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2013 (7) TMI 573 - HC - Income TaxAddition u/s 40A(3) - Cash payment in excess of prescribed limit - Whether the Tribunal was right in deleting the additions under section 40A(3) by applying the exemption rule 6DD(i), when the assessee has not proved that the payee had acted as agents of the assessee and cash payment were to be paid to the growers by the payee on behalf of the assessee in the capacity of agent - When that being the factual finding in respect of the status of those persons, concurrently, by the first appellate authority as well as by the Tribunal by holding that those persons have acted as agents of the assesse - In the absence of an element of sale in the transaction between the society and the assessee the contention of the assessee that the said co-operative society was acting as the agent of the assessee has to be necessarily accepted - assessee is entitled to protection under rule 6DD(i) of the Rules as the disputed payments were made only to its agents - Apart from that aspect, by going through the nature of business and transaction between the parties an element of commercial expediency was also involved in this case which we can take judicial notice – there are no other materials placed by the Revenue to take a different view – appeal decided against revenue.
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