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2018 (6) TMI 1463 - AT - Income TaxAddition u/s 40A(3) - cash payments made to M/s Asansol Bottling and Packaging Co. Ltd - Held that:-We find that the CIT(A) by placing reliance in assessee’s own case for A.Y.2008-09 and 2009-10 [2016 (9) TMI 813 - ITAT KOLKATA] deleted the addition made by the AO u/s 40A(3) the payment made by the assessee retail vendor to the Principal, Government of West Bengal through its wholesale agent. The relationship between the assessee (authorized retailer) and Government of West Bengal (the supplier) acting under West Bengal Excise Rules through its Authorised Wholesaler Licensee (Agent), both de facto and dejure , is one of ‘Principal’ and ‘Agent’. We hold that the assessee retail vendor had made payment to the said agent (wholesale licensee) would fall under the exception provided in Rule 6DD(k) of the Rules. - Decided against revenue
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