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2011 (10) TMI 476 - HC - Income TaxDis-allowance u/s 40A(3) - cash payments made by the assessee to various diaries/societies as well as other milk vendors - there was high sounding names given to the collection centers but, in fact, it was a camouflage - Held that:- Tribunal noted that there was sufficient explanation furnished by the assessee both before the A.O. and CIT(A). These payments were made to the farmers and villagers and they were covered u/s 40A(3) read with Income Tax Rules 6DDF with substantive materials on record, and therefore dis-allowance was not proper. No infirmity found in the order - Decided in favor of assessee. Rejection of books of account u/s 145 - Addition - AO rejected books of account on ground of variation of gross profit rate also - Held that: Tribunal held that there was no defect in the books of account maintained by the assessee and the gross profit of the assessee for the year under consideration was better than the earlier years. Since Tribunal has given cogent reasons and there being absolutely no infirmity in the findings arrived at for not sustaining the orders of both the authorities, this issue requires no further consideration - Appeal is dismissed.
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