Bajaj Auto Limited, Mumbai vs. The Deputy Commissioner of Income-Tax, Circle 3(4), Mumbai
In the result, the grounds of appeal raised by the assessee are allowed
ITA 2786/MUM/2025[2021-22]Status: DisposedITAT Mumbai13 Jun 2025AY 2021-22
Bench: Shri Pawan Singh & Shri Prabhash Shankarbajaj Auto Limited, The Deputy Commissioner 2Nd Floor, Bajaj Bhawan, Vs. Ofincome-Tax, Officer, Circle 3(4), Room No. 421, 4Th Floor, Aayakar 226, Jamnalal Bajaj Marg, Nariman Point, Mumbai 400021 Bhavan, Maharishi Karve Road, Pan: Aadcb2923M Mumbai-400020 Appellant Respondednt Assessee Represented By Ms. Vasantiben Patel, Advocate Department Represented By Shri. Satyaprakash R. Singh, Cit-Dr. Date Of Hearing 05/06/2025 Date Of Pronouncement 13/06/2025 Order Under Section 143(3) Of The Income-Tax Act, 1961 Per Pawan Singh: 1. This Appeal By Assessee Is Directed Against Order Of Learned Cit(A)/National Faceless Appeal Centre (Nfac), Delhi Dated 13/03/2025 For Assessment Year 2021-22. The Assessee Has Raised Following Grounds Of Appeal: “Disallowance Under Section 40(A)(Ia) In Respect Of Target Discount, Consistency Discount & Cash Discount Provided To Spare Parts Dealers: Rs. 55,18,08,851: 1. On The Facts & In The Circumstances Of The Case & In Law, The Commissioner Of Income-Tax (Appeals) Erred In Upholding The Action Of The Assessing Officer In Disallowing A Sum Of Rs. 55,18,08,851 Under Section 40(A)(Ia), For Non-Deduction Of Tax At Source Under Section 194H, Computed At 30% Of The Following Discounts Provided To Spare Parts Dealers: (A) Target Discount Of Rs. 90,72,94,817; (B) Consistency Discount Of Rs. 72,72,96,107; & (C) Cash Discount Of Rs. 20,47,71,915. In Doing So, The Commissioner Of Income-Tax (Appeals) Erred In The Following Respects: 2. In Incorrectly Observing That The Appellant Has Paid Commissionto Its Dealers Under The Cover Of Sales Discounts. 3. In Observing The Appellant Is Offering Discounts On Completion Of Periodic Targets Which Is Computed As A Percentage Of Sales Turnover & Therefore Akin To Commission.
Section 143(3)Section 194HSection 40
…1 IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH ‘B’, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI PRABHASH SHANKAR, ACCOUNTANT MEMBER Bajaj Auto Limited, The Deputy Commissioner 2nd Floor, Bajaj Bhawan, Vs. ofIncome-tax, Officer, Circle 3(4), Room No. 421, 4th Floor, Aayakar 226, Jamnalal Bajaj Marg, Nariman Point, Mumbai 400021 Bhavan, Maharishi Karve Road, PAN: AADCB2923M Mumbai-400020 APPELLANT RESPONDEDNT Assessee represented by Ms. Vasantiben Patel, Advocate Department represented by Shri. Satyaprakash R. Singh, CIT-DR. Date of hearing 05/06/2025 Date of pronouncement 13/06/2025 Order under…
