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2016 (4) TMI 755 - ITAT PUNE

2016 (4) TMI 755 - ITAT PUNE - TMI - Disallowance made under section 40A(3) - Held that:- The explanation of the assessee vis--vis cash payments to drivers of transporters vehicles was that the payments were made in order to look after various expenses on road. However, the claim of the assessee was rejected by both the authorities below as the responsibility of the cash expenditure to be incurred on road was of the transporters, for which the transporters are supposed to handover cash to the d .....

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e drivers for meeting various expenses and also to explain how that cash was reimbursed by the transporters, since the onus of incurring the said expenditure was on transporters. - Decided in favour of assessee for statistical purposes.

Claim of deduction under section 80C - Held that:- No deduction is to be allowed under section 80C of the Act on account of tuition fees paid in respect of grand children of the assessee - Decided against assessee

Disallowance u/s 40(a)(ia) .....

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ble at the close of the year, also does not stand in view of decision of Pune Bench of Tribunal in various cases - Decided against assessee - ITA No.1359/PN/2014 - Dated:- 24-2-2016 - MS. SUSHMA CHOWLA, JM AND SHRI PRADIP KUMAR KEDIA, AM For The Appellant : None For The Respondent : Shri Dheeraj Kumar Jain ORDER PER SUSHMA CHOWLA, JM: This appeal filed by the assessee is against the order of CIT(A)-I, Nashik, dated 12.05.2014 relating to assessment year 2009-10 against order passed under section .....

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oner of Income Tax, (Appeal)-I, Nashik has erred in holding that appellant's case is not covered under any of the exceptions mentioned in Rule 8DD of the Income Tax Rules particularly when the town is not served by any bank to the payee. 3. Without prejudice to other Grounds of Appeals and on the basis of facts and in the circumstances of the case, the Commissioner of Income Tax, (Appeal)-I, Nashik has erred in holding that appellant's case is not covered under any of the exceptions ment .....

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ome of the payments are made on holidays. 5. Without prejudice to other Grounds of Appeals and on the basis of facts and in the circumstances of the case, the Commissioner of Income Tax, (Appeal)-I, Nashik is not justified in doubting the genuineness of payment when genuineness of payment was not in dispute. 6. Without prejudice to other Grounds of Appeals and on the basis of facts and in the circumstances of the case, the Commissioner of Income Tax, (Appeal)-I, Nashik is not justified in not al .....

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n the circumstances of the case, the Commissioner of Income Tax, (Appeal)-I, Nashik is not justified in confirming the disallowance made by the AO of ₹ 55,050/- on account of handling charges paid to Mr. Balu Malode by invoking provisions of section 40(a)(ia) of the Act particularly when the entire payment was made during the year and no amount was payable as on 31.03.2009. Without prejudice to above, the Commissioner of Income Tax, (Appeal)-I, Nashik is not justified in not allowing the b .....

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ere was employer employee or master agent relationship between Mr. Malode and Appellant. 10. The Appellant craves for addition to, deletion, alteration, modification, change any of the grounds confirming the above mentioned penalty. 2. Despite service of notice, none appeared on behalf of the assessee nor any application was moved for adjournment, hence, we proceed to decide the present appeal after hearing the learned Departmental Representative for the Revenue. 3. The issue in grounds of appea .....

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various transporters. The total cash payments amounted to ₹ 10,34,294/-. The Assessing Officer was of the view that the cash payments were in contravention of provisions of section 40A(3) of the Act and hence, the addition of ₹ 10,34,294/- was made in the hands of assessee. 5. The explanation of the assessee before the CIT(A) was that the said cash payments were made because transporters were located outside Nashik and did not have the bank account in Nashik. He further stated that t .....

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was of the view that providing cash to the drivers / staff of the vehicles for expenses such as fuel, toll, food, etc. was the responsibility of the hired transporters and not the assessee and whenever vehicle is hired by a person, the transporters give cash to its drivers for petrol, toll, unforeseen repairs, etc. In view thereof, the disallowance of ₹ 10,34,294/- was upheld. 6. The assessee is in appeal against the order of CIT(A). 7. Despite several opportunities have given to the asses .....

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cash payments are not to be allowed as deduction in the hands of assessee. The Assessing Officer during the course of assessment proceedings noted that the total cash payments made by the assessee were ₹ 10,34,294/-. The assessee was engaged in transport business and was hiring vehicles from various transporters both within Nashik and outside Nashik. The explanation of the assessee vis-à-vis cash payments to drivers of transporters vehicles was that the payments were made in order .....

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aim of the assessee. However, in the absence of any details being available before us, we deem it fit to restore the issue back to the file of Assessing Officer to decide as per fact and law. The assessee is directed to file the necessary evidence that the cash was given to the drivers for meeting various expenses and also to explain how that cash was reimbursed by the transporters, since the onus of incurring the said expenditure was on transporters. The assessee is further directed to furnish .....

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of the Act. We find no merit in the aforesaid ground of appeal raised by the assessee since no deduction is to be allowed under section 80C of the Act on account of tuition fees paid in respect of grand children of the assessee. The ground of appeal No.7 raised by the assessee is thus, dismissed. 10. Now, coming to the grounds of appeal No.8 and 9 raised by the assessee i.e. disallowance made by invoking provisions of section 40(a)(ia) of the Act amounting to ₹ 55,050/-. 11. The assessee h .....

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