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2019 (12) TMI 138 - AT - Income TaxDisallowance of deduction u/s 80IA - HELD THAT:- The enterprises carrying on development of the infrastructure facilities should be owned by a company or consortium of companies. The infrastructure facilities need not be owned by a company. It was held that the word ‘ownership’ is attributable only to the enterprise carrying on the business which would mean that only companies are eligible for deduction under section 80IA(4) and not any other person like new HUF Firm etc. Hence, we hold that the assessee fails to satisfy the applicability clause of the provision as envisaged under section 80IA(4)(i) of the “Act”. So far as catena of the judgments submitted assessee, we notice that they only pertain to section 80IA(4)(i)(b) i.e. regarding the issue of contractor viz-a-vis developer. Hence, we do not deem it appropriate to decide on the said issue since the assessee does not fulfill the condition enumerated in the first part of the statutory provision. Disallowance u/s 40A(3) - HELD THAT:- The provisions of section 40A(3) of the Act restrict payment or aggregate of payment made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeding ₹.20,000/-. Moreover, in the case of N. Mohammed Ali v. ITO [2016 (1) TMI 941 - MADRAS HIGH COURT] the Hon’ble Jurisdictional High Court has held that where the assessee made cash payments in excess of ₹.20,000/- for purchase of crackers, in absence of even names of agencies or agents or retailers living in villages to whom the said payments were made on a day-to-day basis, the impugned disallowance made by the authorities below u/s 40A(3) should be confirmed. We confirm the disallowance of expenses made to New Bharat Electricals & Enterprises, PSK Blue Metal and New Bharat Foundation. We direct the AO to allow the payment made to Raghvendra Blue Metal of ₹.10,000/-, which is less than the monetary limit stipulated under section 40A(3). Accordingly, the ground raised by the assessee is partly allowed.
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