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4 (i)........

ii) During the consideration, while verifying the details of Expenses debited under the head "Discount and Rebates" the Assessee has debited amount Rs 173.30 Lacs under the head "Discounts" given to various parties. The assessee's gross turnover during the year decreased to Rs.51378.17 Lacs from Rs. 54119.34 Lacs shown in the immediate preceding year. Considering the decrease in gross turnover, the corresponding increase in discount and rebate is not-comparable. The assessee could not explain satisfactorily such heavy increase in this expenditure. In order to cover any leakage on account of inadmissible expenses. 10% of the Discounts are disallowed i.e. a sum of Rs. 17.33 lacs is disallowed and added to the assessees income.