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2012 (10) TMI 323 - ITAT HYDERABADActivity of Horse racing - ad-hoc dis-allowance on ground that assessee has not maintained any separate vouchers/receipts for payments made to winning punters - AY 08-09 - Held that:- Issue is covered by the order of the ITAT, in assessee’s own case for AY 2007-08 wherein such ad hoc dis-allowance was deleted on ground that looking to the nature of activity of assessee, it is difficult to maintain complete details about all the persons. The entire payment was through computerized system. The payment was made to the person holding the winning ticket and Department has not brought to notice of any instance of payment when there was no winning ticket. Following the aforesaid, addition made is deleted Dis-allowance u/s 40A(3) - payment in excess of Rs. 20000/- in cash made to winning punters - Held that:- Issue is covered by the order of the ITAT, in assessee’s own case for AY 2007-08 wherein it was held that considering the nature of activity of the Assessee and the necessity for them to pay cash to the winners immediately, condition under Rule 6DD for exemption viz., transactions should have taken place on Bank Holidays should be read down in the case of the Assessee. If the transaction took place beyond the normal Banking Hours on working days and transaction which took place on Sundays and Holidays, it would not attract the provisions of sec 40A(3). Hence in view of aforesaid, matter remitted back to file of AO to re-compute the disallowance u/s 40A(3) as per the above disallowance and the Assessee shall furnish the particulars about the timings of the payment of the winnings to punters Dis-allowance u/s 40(a)(ia) - commission - Held that:- Issue is covered by the order of the ITAT, in assessee’s own case for AY 2007-08 wherein matter was restored to file of AO to give another opportunity to the assessee to present its case and establish that there is no principal agent relation ship between the two Clubs and amount paid by the assessee to other Race Clubs is only sharing of the profit and not in the nature of collection. same direction given for current year - Decided in favor of assessee for statistical purposes
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