Held that the CIT(A) allowed the deduction without calling for the remand report of the AO. Order was set side to AO to decide the issue afresh. Held that the modus operandi of creating the EDP is totally flawed and against the accounting norms, in view of the fact that no scientific manner has been adopted by the assessee for the creation and maintaining the EDP, the deduction for the incentive commission is to be allowed the package was sold as reduced by the payments made in respect of the on actual payment basis in the concerned year irrespective of the year in which packages sold in the earlier years.(AY 2013-14, 2014-15)
ACIT v. Indus Health Plus (P) Ltd. (2022) 220 TTJ 764 (Pune)(Trib)
S. 37(1) : Business expenditure-Medical check-up provision for charges payable to hospitals-Matter remanded for verification-Escrow Disbursement Provision for incentive payable to distributors-The deduction for the incentive commission is to be allowed the package was sold as reduced by the payments made in respect of the on actual payment basis in the concerned year irrespective of the year in which packages sold in the earlier years. [S. 145]