1

Commissioner (A) is not empowered to enhance income a new source of income vide 82ITR 9Trib) 176
1

It is assessee’s choice to select a method for determining FMV of shares vide 81 ITR (Trib) (SN) 78
1

No TP adjustment of trade receivables in case of a debt-free company vide 81ITR (Trib) (SN) 94
1

To accord registration as a charitable institution under income tax dominant purpose must be charitable and satisfies the conditions laid down us 2(15) vide 426ITR108 despite having non charitable ancillary objects meant to achieve the dominant purpose
1

Transactions with dubious entities is reason enough for case reopening vide 421ITR624

Discount vs rent

ByCA Gopal Nathani

Apr 22, 2022

The Gujarat High Court in [2022] 19 ITR-OL 438 (Guj) came to the rescue of the taxpayer when the revenue challenged their claim for deduction of additional discounts offered on godown rent to the customers on the following grounds

that those parties were owning their own godown in Mumbai
the assessee was paying the rent to those parties in the form of discounts extended to them and such discount is subject to the provisions of section 194-I paying the rent in the garb of discounts.

Brushing aside such contentions the Court refused to go into the rationale of the discount which is a deduction being different from rent which fact is requiring verification as per directions issued by Commissioner (A) in this case. Thus on the revenue ground that section 194-I do not provide protection to such like discounts which are in the character of rent the Court declined to interfere at all given the free will to the taxpayer to run its affairs.