business
agreements on principal to principal basis at a discounted price than MRP with
the agreed rider that no product shall be sold ... price more than MRP and
thus, such transactions are not liable for TDS u/s. 194H of the Act. According to
the Assessing Officer
being the difference between the
value of MRP declared to custom authorities and the
value of Maximum Retail Price (MRP) altered by the
assessee ... have failed to appreciate that the
concept of MRP is a legal fiction specifically created for the
purpose of section 4A of the Excise
recomputed G.P at the rate 30.45% of 75% of MRP turnover.
2. That the Commissioner of Income Tax (Appeals) erred ... recomputed G.P at the rate 53.3.1% of 78% of MRP turnover.
5 2929/Del/2012 Harsh
2. That the Commissioner of Income Tax (Appeals
Barielly. On further examination , the AO observed that average
discount offered on MRP to customers was only 47.86% and worked out
consignment sale ... also
referred to the claim of the assessee that MRP of the goods was fixed and
transfer of goods took place @50% of MRP
surrendered for taxation by the assessee. Stock was valued
at MRP less G.P. percentage by the survey team. Assessee makes sales at
MRP less ... difference in valuation of closing stock.
Survey team took the valuation applying MRP- GP% whereas as per
assessee, since as per normal trade practice sales
transferred to the distributor. As an example he stated that
suppose the MRP of prepaid talk time is Rs.100 and the assessee
sold ... principal-agency relationship. In the present case as well,
fixation of MRP by the Appellant is not conclusive of the
arrangement between the parties
selling price but the price should not exceed the MRP. The Revenue
says that there is no such freedom in fixing the sale price ... distributors are free
to determine the ultimate sale price subject to MRP.
We do not think that this so-called pricing freedom is so crucial
items was incorrectly computed by valuing
the stock on the basis of MRP less 15% trade discount less 22.5% gross
profit margin on an estimated ... more than
one year old, the valuation was done at 50% MRP less 15% trade
discount less 22.5% profit margin and for those items
submitted that the valuation as taken by the survey team on the MRP
of items was misleading and unjustified. Considering the above, Ld.
Commissioner ... assessee has
clarified that "Physical inventory has been valued at MRP. If it is taken
at cost price there should not be any difference
difference of Rs.08,06,847/- was on account of
difference between MRP and cost price of stocks. It was further submitted
that these facts ... survey team had prepared the inventory of stock on the
basis of MRP whereas it should have been on the basis of cost price
