TMI Blog2018 (1) TMI 1036X X X X Extracts X X X X X X X X Extracts X X X X ..... Decided in favour of assessee - ITA No. 1346/Del/2015 - - - Dated:- 17-1-2018 - Sri G. D. Agrawal, Hon ble President And Smt. Beena A Pillai, JM Appellant by: Sri Ajay Bhagwani, CA Respondent by: Sri Vijay Verma, CIT, D.R. ORDER Per Beena A Pillai, Judicial Member The present appeal has been filed by assessee against the order dated 21/11/14 passed by Ld.CIT(A)-30 for assessment year 2006-07 on the following grounds of appeal: 1. That the orders passed by the AO and CIT(A)-XXX, New Delhi are bad in law and void ab-initio. 2. That on the facts and circumstance of the case and in law the CIT(A) erred in sustaining the disallowance of ₹ 13,43,600/- u/s 40A(3) of the IT Act despite the fact that no dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er of Ld. CIT (A) assessee is in appeal before us now. 3.1. Ld. A.R. submitted that Ld. CIT (A) decided the issue vide order dated 28/12/12 for the year under consideration in an appeal filed by assessee against original assessment order passed under section 143(3) of the Act. He submitted that Ld.CIT(A) therein upheld the disallowance made under section 40A(3). Ld. A.R. submitted that subsequent to the order passed by Ld.CIT(A) in original assessment proceedings, assessee preferred appeal before this Tribunal and this Tribunal decided the issue as under: As far as the assessee's appeal i.e.I.T.A. No. 1761/Del/2013 is concerned, after going through all the relevant records and after giving a careful consideration to the rival su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the case, provisions of s.40A(3) are not attracted with respect to either of the transactions; obviously because it only prohibits allowing of deduction, as expenditure. Expenditure obviously means expenditure admissible to be deducted from out of the income, which may include the expenditure on purchase and the like, and the sub-section provides that if any such expenditure is incurred after specified date, in a specified manner, then 20 per cent of such expenditure shall not be allowed as a deduction. In the present case the assessee has not claimed any deduction of any expenditure of ₹ 3,88,000/- or ₹ 7,35,000/- and therefore, there is no question of not allowing any part of that expenditure, as deduction. Thus, the fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of section 40A(3) of the Act were not attracted. Thus, we do not find a17-Y merit in this appeal and no substantial question of law arises for determination of this Court. Hence this appeal is dismissed. 18. Accordingly on a consideration of the facts and circumstances of the case and considering the relevant provision of the Act namely Section 40A(3), we hold for the detailed reasons given hereinabove that Section 40A(3) of the Act has been wrongly invoked as admittedly no expenses relatable to the addition has been claimed. Accordingly this ground of the assessee's appeal is allowed. 3.2. Ld. A.R. submitted that in view of the above this issue stands covered by order of this Tribunal in assessee s own case for the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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