Mayank Shyamsukha (CA FINAL) (119 Points)
26 December 2009 Hi,
A company gives the discount coupons to its shareholders on purchase of its product. Can this would be hit by Section - 2(22)(a) or Under any other section of Income Tax Act, 1961.
Amir
(Learner)
(4016 Points)
Replied 26 December 2009
Hi Mayank, i think your query is a Question of FACT rather law, therefore if discounts coupons are given to shareholders ONLY then it might attract 2(22)(a) but if is available to public at large then it cannot be covered under sec 2(22)(a) and the company will get the deduction of the amount of DISCOUNT..
Mayank Shyamsukha
(CA FINAL)
(119 Points)
Replied 28 December 2009
Hello Amir,
if The discount coupons by the company to its share holders for purchase of its own product, is treated as dividend then what happen if such coupons are given to general public. Can it be treated as Income from winning of lottery, crossword, puzzle etd. under the head IFOS in the hands of purchaser?????? Because there is drastic change in the definition of Lottery which includes "any kind of arrangement by whatever name called."
Amir
(Learner)
(4016 Points)
Replied 29 December 2009
My friend, Discount Coupons can NEVER be treated as INCOME..Because for Income there has to be some INFLOW..I know there are exceptions to this general rule but again exceptions has to be specified by law, its NOT something which is IMPLIED..
AS FAR AS DEFINATION OF WINNING FROM LOTTERY,ETC IS CONCERNED THE RULE OF INTERPRETATION SAYS THAT "WHEN GENERAL WORDS FOLLOW SPECIFIC WORDS, THEN GENERAL WORDS SHALL DERIVE THEIR MEANING FROM SPECIFIC WORDS" - EJUSDEM GENERES
Amir
(Learner)
(4016 Points)
Replied 29 December 2009
DISCOUNTS COUPONES cannot be covered under the defination of WINNING FROM LOTTERIES, ETC
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