Dismissing the appeal of the revenue, deletion of addition for variation in rate charged for defective or second quality Tyres of different units is held to be justified. Reduction of disallowance of general expenses is a question of fact. Restricting the disallowance of rent to 50% in respect of rent to other companies having same chairman and managing director is held to be justified. Commission paid by suppliers of assessee to investment companies which are assessed in the assessment of investment companies cannot be assessed in the hands of the assessee. (AY. 1994-95)
CIT v. Apollo Tyres Ltd. (No .2) (2019) 416 ITR 546 (Ker.) (HC) CIT v. Apollo Tyres Ltd. (No. 3) (2019) 416 ITR 554 (Ker.) (HC)
S. 37(1) : Business expenditure-Variation in quality or defective goods–No addition can be made-General expenses–Reduction of expenses–Rent to other companies–Same management– Commission paid to investment companies–Amount cannot be assessed in the hands of the assessee.[S. 4]