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2018 (4) TMI 645 - AT - Income TaxAddition u/s 40A(3) - cash payments made against purchases of liquor exceeding ₹ 20,000/- - Held that:- In the case of M/s. Amrai Pachwai & C.S. Shop (2014 (2) TMI 979 - ITAT KOLKATA) similar payments were made by the assessee against purchase of liquor by depositing the cash directly in the bank account of the supplier in the sums exceeding ₹ 20,000/- and the disallowance made for the same under section 40A(3) was deleted by the Tribunal as held the payments made by the assessee for purchase of country spirit and country liquor is to the government as per the notification issued by the government and is in legal tender specified by the notification - the payment made by the assessee for the purchase of country liquor and country spirit from the territorial licensee bottling plant is protected by the exemption in terms of Rule 6DD(b) of the I.T Rules 1962 - the addition as made by the AO and as confirmed by the CIT(A) by invoking the provisions of section 40A(3) of the I.T Act 1961 stands deleted – Decided in favour of Assessee.
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