TMI Blog2011 (10) TMI 476X X X X Extracts X X X X X X X X Extracts X X X X ..... ected books of account on ground of variation of gross profit rate also - Held that: Tribunal held that there was no defect in the books of account maintained by the assessee and the gross profit of the assessee for the year under consideration was better than the earlier years. Since Tribunal has given cogent reasons and there being absolutely no infirmity in the findings arrived at for not sustaining the orders of both the authorities, this issue requires no further consideration - Appeal is dismissed. - Tax Appeal No. 1849 of 2010 - - - Dated:- 18-10-2011 - Akil Kureshi, Sonia Gokani, JJ. Mauna M. Bhatt for the Appellant JUDGEMENT Sonia Gokani: 1. The appellant-Revenue, being aggrieved by the order of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion centers but, in fact, it was a camouflage. There were seven parties examined by the Assessing Officer and although there was nothing to indicate that they were not supplying milk to the societies, Assessing Officer disbelieved the entire transactions. CIT(A) deleted the said disallowance and the Tribunal concurred with the CIT(A). Tribunal noted that there was sufficient explanation furnished by the assessee both before the Assessing Officer and CIT(A). These payments were made to the farmers and villagers and they were covered u/s. 40A(3) read with Income Tax Rules 6DDF with substantive materials on record, and therefore disallowance was not proper. 4. Entire issue has been dealt with extensively by the Tribunal and it thereafter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was making payments, which was to be handed over to the producers and they were handing over such amount to the respective milk producers. We find that, according in the farmers, the consideration paid for the same are collected by the president and it was handed over the persons supplying the milk, in the ratio of the milk provided by each person. Thus, they have received the amount in the ratio of milk supplied in the name of dairy. These dairies are thus only the facilitating stations for the producer of milk and the assessee is making purchases directly from the producers and accordingly falls in the exceptions. In view of the above facts and circumstance, we allow this issue of the assessee's appeal and dismiss that of the Revenue's a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0A where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees in the cases and circumstances specified hereunder, namely:- **** **** **** (f) Where the payment is made for the purchase of the products and manufactured or processed without the aid of power in a cottage industry, to the producer of such products;" **** **** ****" 6. Rule 6DD(f) mentions one of the circumstances, which indicates that when the payment is made of the products manufactured or processed without the aid of power in a cottage industry, to the producer of such products, injunction specified under Section 40A(3) would not come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal has dealt with the issue in accordance with the law, issue requires no interference. 7. The 2nd question relates to deletion of addition made by the Assessing Officer after rejecting the books of account u/s. 145 of the Act. As noted by the Tribunal, Assessing Officer rejected the books of account of assessee u/s. 145 and added the gross profit. CIT(A) confirmed the said order of Assessing Officer. This was done on the ground that the assessee's books of account did not reflect true picture of financial profit of the assessee. According to the Assessing Officer, on account of much variation of gross profit rate also, this was so done. The Tribunal did not agree with the findings of either of the adjudicating authorities and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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