Assessee was a partnership firm engaged in business of distribution of agro machineries and worked as dealer/redistributor of companies like CG and UI.  It had received special redistributors incentive from UI in form of credit notes and since said benefit in form of incentive had arisen to assessee in course of business. Assessing Officer treated it as business income of assessee as per section 28(iv) and made addition to that extent.  Tribunal held that the amount of incentive was received from UI for specific purpose of purchase of van which was to be utilised for display and demonstration of logo of UI and said amount had actually been utilised for purchase of van in immediately succeeding year.  Further, assessee reduced incentive received from UI from cost of acquisition and thereafter balance amount was reflected in balance sheet on which depreciation was claimed by assessee and this accounting treatment was duly given by assessee as per Explanation 10 to section 43(1) of the Act. Accordingly the Tribunal held that incentive received by assessee from UI, could not be treated as business income of assessee in terms of section 28(iv) and thus addition made by Assessing Officer under section 28(iv) was to be deleted.  (AY. 2011-12)