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2014 (2) TMI 1243 - ITAT KOLKATAAddition u/s 40A(3) - whether payments are all covered by the exception to rule 6DD of the I.T.Rule’62, and as such the addition may please be deleted - cash payments made by the assessee for the purchase of country liquor from the Government authorised dealers - Held that:- The issue in the assessee’s case is in respect of the payments made under the rules framed by the Government and such payment was required to be made in legal tender. A perusal of the Government Notification issued by the Govt. of West Bengal clearly shows that the dealers are agents of the Government and the payments made are to the Government. It also makes it categorically required that the payment is to be made before lifting of the country spirit. Consequently we are of the view that the issue is squarely covered by the decision of the Coordinate Bench of this Tribunal in the case of M/s.Amrai Pachwai & C.S.Shop [2014 (2) TMI 979 - ITAT KOLKATA] wherein held the provisions of Rule 6DD(b) of the I.T.Rules, 1962 which clearly spells out that the payment made to the government in legal tender under the rules framed by the Government, is exempted from the rigours of section 40A(3) of the Act. Here, it is noticed that the payments made by the assesee for purchase of country spirit and country liquor is to the government as per the notification issued by the government and is in legal tender specified by the notification. In the circumstances, we are of the view that the payment made by the assessee for the purchase of country liquor and country spirit from the territorial licensee bottling plant, IFB Agro Industries Ltd., City Centre, Durgapur is protected by the exemption in terms of Rule 6DD(b) of the I.T.Rules 1962. In the circumstances, the addition as made by the AO and as confirmed by the ld. CIT(A) by invoking the provisions of section 40A(3) of the I.T.Act 1961 stands deleted. - Decided in favour of assessee
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