TMI Blog2017 (5) TMI 1713X X X X Extracts X X X X X X X X Extracts X X X X ..... retation of rules 6DD(b), this cannot be taken as if all the Government s companies are exempt merely because they qualified to be termed as state under Article 12 of the Constitution of India. Had the intention of the legislation was to exempt other Government Companies as well as same would have been mentioned in the provision of rule 6DD(b) as has been specifically mentioned in clause (a) of Rule 6DD in respect of Reserve Bank of India, Banking Company., State Bank of India or any Subsidiary Banking any Cooperative Bank, Land mortgaged Bank any Primary Agricultural Credit Society, any Primary Credits society, Life Insurance Corporation of India. Clause (b) of Rule 6DD cannot be stretched to the extent of bringing every Government entity/company into the fold of exempt category. Therefore, had the intention of the legislation was to exempt the Government electricity company, it would have been mentioned in the Clause (b) of Rule 6DD. Therefore, this Ground of the assessee s appeal is dismissed. - ITA No. 195/JP/2016 - - - Dated:- 15-5-2017 - SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM For the Appellant : Shri Rajeev Sogani (C.A) For the Respondent : Shri R.A. Verm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. He submitted that the Assessing Officer had not pointed out any specific instance of personal nature expenses debited into Profit and Loss account. 3.1 However, the Ld. CIT(A) restricted the disallowance to the extent of ₹ 8,04,302/-. He submitted that the appellant is a Private Ltd. Company. Its books of accounts are audited under the provisions of Companies Act, as well as under the provisions of the Income-tax Act. In both these Audited Reports no remark for qualification is made by the auditors. Evidences of the expenses were found satisfactory by the auditors. Books of accounts were produced before the Assessing Officer during the course of assessment proceedings. These books had been accepted and were not rejected u/s 145(3) of the Act. He submitted that the Assessing Officer has mentioned that, he had conducted details scrutiny of various expenses debited to Profit and Loss Accounts under the Head Administrative and other Expenses. The Ld. Counsel has placed reliance on the Hon ble Punjab and Haryana High Court rendered in the case of S.S.P Pvt. Ltd [2011] 202 Taxman 386 (P H-HC). 3.2 On the contrary, the Ld. Departmental Representatives opposed the submis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance disallowance of ₹ 1156945/- is concerned, the payment is to JVVNL which is not a payment to Govt. and also not covered in any exceptional circumstances. The Hon ble ITAT Jaipur Bench in case of Khetan Minerals (P) Ltd. vs. ITO 1235/JP/2008 dated 30.09.2005 held that cash payment to JVVNL is hit by the provision of section 40A(3). Respectfully following the order of ITAT Jaipur Bench, the disallowance made by the AO to the extent of ₹ 11,56,945/- is confirmed. 4.4 The Ld. Counsel for the assessee has vehemently argued and placed reliance on the decision of the Co-ordinate Bench rendered in the case of Sapna Sanjay Raisoni vs. ITO, wherein the Hon ble Co-ordinate Bench was pleased to delete the disallowance by following the Judgment of the Hon ble High court of Andhra Pradesh rendered in the case of Shri Laxmi Satyanarayan oil Mill vs. CIT 367 ITR 200 (AP). The Ld. Counsel also placed on the decision of the Co-ordinate Bench rendered in the case of Smt. Usha Maheshwari v/s DCIT Central Circle-2 Udaipur ITA No. 187 188 /JU /2013 wherein also the decision was rendered on the basis that the money was collected by the Government Company. We are unable to accep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not, which is established outside India; (d) Where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee; (e) Where the payment is made for the purchase of- (i) agricultural or forest produce; or (ii) the produce of animal husbandry (including livestock, meat, hides and skins) or diary or poultry farming; or. (iii) fish or fish products or (iv) the products of horticulture or apiculture, to the cultivator, grower or producer of such articles, produce or products; (f) where the payment is made for the purchase of the products manufactured or processed without the aid of power in a cottage industry, to the producer of such products; (g) where the payment is made in a village or town, which on the date of such payment is not served by any bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town; (h) where any payment is made to an employee of the assessee or the heir of any such employee on or in connection with the retirement, retrenchment, resignation, discharge or ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
