TMI Blog2018 (4) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... ication - the payment made by the assessee for the purchase of country liquor and country spirit from the territorial licensee bottling plant is protected by the exemption in terms of Rule 6DD(b) of the I.T Rules 1962 - the addition as made by the AO and as confirmed by the CIT(A) by invoking the provisions of section 40A(3) of the I.T Act 1961 stands deleted – Decided in favour of Assessee. - I.T.A. No. 105/Kol/2017 - - - Dated:- 11-4-2018 - Shri P.M. Jagtap, AM And Shri S.S. Viswanethra Ravi, JM For The Assessee : Shri Miraj D Shah, AR For The Revenue : Shri S. Dasgupta, Addl CIT(DR) ORDER PER P.M. JAGTAP, AM This appeal filed by the assessee is directed against the order of Ld. CIT(Appeals) 14, Kolk ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o perused the relevant material available on record. It is observed that the issue involved in this appeal of the assessee relating to the disallowance under section 40A(3) is squarely covered in favour of the assessee by the various orders of this Tribunal. In one of such orders passed in the case of M/s. Amrai Pachwai C.S. Shop (ITA No. 1251/Kol/2011 dated 15.01.2014), similar payments were made by the assessee against purchase of liquor by depositing the cash directly in the bank account of the supplier in the sums exceeding ₹ 20,000/- and the disallowance made for the same under section 40A(3) was deleted by the Tribunal for the following reasons given in paragraphs no. 21 22 of its order: 21. We find that M/s. Asansol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tablishment. It would also be pertinent to note that the said warehouse has been specifically established for supply of country spirit to retail vendors (assessee herein) only and not to anybody else. It would be pertinent to look into the definition of 'Wholesale licensee as per Rule 2(viii) of the Excise Rules 2005 as below.- Rule 2(viii) - Wholesale licensee means the wholesale vendor of country spirit to whom licence has been granted in West Bengal Excise Form No. 26. It would be pertinent to look into Section 22 of The Bengal Excise Act. 1909 at this juncture as below:- Section 22 - Grant of exclusive privilege of manufacture and sale of country liquor or intoxicating drugs ( 1) The State Governm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee (retail vendor) had made cash payments for purchase of country spirit by depositing cash directly into the bank account of M/s ABPL as per Rule 6(2) of the Excise Rules 2005 , it has to be construed as payment made to the State Government authority and accordingly falls under the exception provided in Rule 6DD(b) of the IT Rules. 22. It is not in dispute that M/s Asansol Bottling Packaging Co. Pvt. Ltd have been granted licence to act as a wholesaler for supply of country liquor to the retail vendor as per the regulations of the Excise Department, Government of West Bengal. At the cost of repetition, we would like to state that the said regulation mandated the payments to be made directly into the bank account of the said who ..... X X X X Extracts X X X X X X X X Extracts X X X X
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