ITAT Bangalore, ruled in favour of Flipkart on the issue of discounts offered by e-commerce company

In a relief to Flipkart the Income Tax Appellate Tribunal rejected the Income-tax department’s argument that, discounts offered by the flipkart should be reclassified as capital expenditure. This ruling is very important from the perspective that, product discounting, advertisement and marketing expenses constitute a major portion of expenses of e-commerce companies/ start-up companies. Click here to view ITAT order