J.K. Ranka, J. - (1.) This instant revision petition is directed against the order dated September 2, 2013 passed by the Rajasthan Tax Board, Ajmer in Appeal No. 344 of 2012/Bharatpur by which the appeal filed by the Revenue was dismissed. It relates to assessment year 2008 -09. The brief facts are that the assessee -respondent is a seller of tyre and tubes and purchased the same from wholesaler and then sold the same to the consumers on retail basis. Wholesaler while selling the goods allows cash discount as also trade discount/incentive from the sale value and then issues VAT invoice. In addition to the normal cash discount and trade discount the assessee being purchaser was allowed benefit of several schemes and other discount as per schemes available during the year. Such discount was allowed separately and there is no concern with the VAT invoice and is being allowed by way of discount credit notes. Such credit notes are being allowed on the basis of turnover discount, volume discount, target discount, price escalation difference, incentive and bonus while the assessee credits the same under the head of discount and commission and credits the same in profit and loss account. While selling the goods, the assessee even sold the goods to the consumers below the value quoted in VAT invoice. The assessee received Rs. 58,06,720 by way of discount and commission and on perusal of books of account, the assessing officer noticed that the assessee filed excess claim of input -tax credit (ITC) whereas the purchases were shown in the trading account by a lesser amount. Therefore the assessing officer intended to add the aforesaid discount and accordingly being not satisfied with the explanation of the assessee added the same and computed tax payable. The matter was carried in appeal before the Deputy Commissioner (Appeals) (for short, "DC (A)") who allowed the claim of the assessee. The matter was carried in further appeal by the Revenue to the Rajasthan Tax Board who also dismissed the appeal of the Revenue, hence this revision petition.
(2.) The learned counsel for the Revenue contended that the assessing officer was well justified as the discount and commission of Rs. 58,06,720 ought to have been part of trading account and the assessee claimed excess input -tax credit which was not legally permissible and the Rajasthan Tax Board was unjustified in holding the same. He further contended that question of law arises out of the order of the Tax Board and need consideration of this court.
(3.) I have considered the arguments advanced by counsel for the Revenue.;