Tribunal held that the assessee was engaged in manufacture, import and sale of mobile handsets. The assessee had given mobile handsets to its employees, dealers, sale personnel, etc., free of cost and thus no longer owned the handsets. Thus, the cost was rightly taken as business expenditure by the assessee and was rightly reduced from the inventory. The disallowance was not warranted. Trade discount is also allowable as business expenditure. (AY. 2008-09, 2012-13)
Nokia India Pvt. Ltd. v. Add. CIT (2020) 83 ITR 69 (SN) (Delhi)(Trib.)
S. 37(1) : Business expenditure-Marketing expenses-Mobile handsets issued free of cost to after-Marketing services Centers, annual maintenance and services contractors, dealers and employees-Cost allowable as business expenditure–Trade discount also allowable as business expenditure.