Verify genuineness of Agreements in case of discount by Holding Co: ITAT

IN THE INCOME TAX APPELLATE TRIBUNAL

The Relevant Text of the Order as follows :

31. In our considered opinion, the Assessing Officer should have examined the transactions in light of agreements/MOUs and related documentary evidences before coming to any conclusion. We further find that all the documents were not furnished before the Assessing Officer as the same has been placed before us in the form of Additional Evidences to demonstrate that the discounts/rebates have ultimately been passed on to the customers.

32. In the interest of justice and fair place, we deem it fit to restore this issue to the file of the Assessing Officer. The assessee is directed to demonstrate that discounts/rebates have ultimately been passed on to customers and the Assessing Officer is directed to verify the same in light of Agreements/MOUs. Needless to mention, the Assessing Officer shall give reasonable and sufficient opportunity of being heard to the assessee. This grievance is also set aside and allowed for statistical purposes.

33. In the result, the appeal of the assessee in ITA No. 5582/DEL/2019 is treated as allowed for statistical purposes.

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