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2023 (1) TMI 821 - ITAT NAGPURDisallowance u/s. 40A(3) - cash payment towards electricity bill paid to Maharashtra State Electricity Distribution Company Limited (MSEDCL) - HELD THAT:- A similar issue based on same identical facts, this Tribunal decided the issue in favour of the assessee in the case of Aakash Petroleum [2022 (12) TMI 1351 - ITAT NAGPUR] by holding that the provisions u/s. 40A(3) of the Act are not attracted to the cash payment made to MSEDCL. Thus hold that, MSEDCL is a State under Article 12 of the Constitution and the cash payments made to its franchise/agent is covered under Rule 6DD(b) of the Rules. Therefore, the disallowance made by the CPC and as confirmed by the CIT(A) is not justified. Order of CIT(A) is set aside and the addition confirmed thereon is deleted and the grounds raised by the assessee are allowed.
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