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2019 (4) TMI 2012 - ITAT KOLKATAAddition u/s 40A(3) - cash payments under the head ‘electric charges’ made exceeding ₹ 20,000/- in a day on various dates - as pleaded that due to shortage of manpower payments of electricity charges could not be made before due date and that for availing rebate this electricity bill payments were made in cash on the due date - HELD THAT:- As relying on M/S A DAGA ROYAL ARTS VERSUS ITO, WARD-2 (2) , JAIPUR [2018 (6) TMI 1240 - ITAT JAIPUR] we find that there is no doubt that the assessee had consumed electricity and had paid these electrical charges in cash. The circumstances under which they were paid was explained. Just because the recipient of the money is a private company, it does not mean that the payment should be disallowed. As the genuineness of the payments are not denied and as these are exception circumstances, we delete the disallowance.- Decided in favour of assessee.
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