TMI Blog2019 (9) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... l/2017 - - - Dated:- 3-6-2019 - Shri A. T. Varkey, JM And Dr. A. L. Saini, AM For the Appellant : Shri Robin Choudhury, Addl. CIT, Sr. DR For the Respondent : Shri S. M. Surana, Advocate ORDER PER SHRI A. T. VARKEY, JM: This appeal filed by revenue is against the order of Ld. CIT(A), Jalpaiguri dated 07.06.2017 for AY 2014-15 on the following grounds: 1. That on the facts and in the circumstance of the case, the Ld. CIT(A) has erred in allowing the cash payments in excess of the prescribed limit u/s 40A(3) on the ground that there is no element of tax evasion in the transactions, despite the fact that such exception or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f less than ₹ 20,000/- in a single day, who generally hold the money for five to six days in their custody and then send the bonders/distributors. The bonders/distributors had recorded the payments on the date on which the same was received by them and hence the payments recorded in their books were more than ₹ 20,000/-. The assessee also cited various exceptions given in Rule 6DD of the I. T. Rules, 1962 (hereinafter referred to as the Rules ) and circumstances under which payment made in excess of ₹ 20,000/- in a single day to a single party would not attract the provisions of section 40A(3) of the Act. Considering the submissions of the assessee, the AO disallowed ₹ 1,29,11,500/- as per the provision of section 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... endment in Rule 6DD and the observation of the Tribunal, Mumbai Bench in the case of International Ships Stores Suppliers the order of Ld. CIT(A) and the scope of section 40A(3) need to be re-considered. Therefore, according to him, the Ld. CIT(A) erred in giving relief to the assessee and he, wants the decision of Ld. CIT(A) to be reversed and the AO s order to be upheld in this regard. 4. On the other hand, the Ld. AR submitted that the assessee purchased country liquor from Bonded Ware Houses under the license issued by the Department of Excise, Govt. of W.B. According to Ld. AR, in fact, nobody can sell country liquor unless so permitted under the notification of Government of West Bengal and the bonders (dealers) are c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so collected from the retailers like the assessee in such bank accounts maintained by them, (4) that in their books the money was credited as received by depositing in the bank the entry of which was more than 20000/ - which was the money deposited by the agent in the bank of the bonder. (5) that the entire sale made by the bonders was reflected as purchase in the books of the assessee and such purchase was genuine. The aforesaid facts have been culled clown from the statement made by the bonders u/s. 131 and observed by the AO in the assessment order itself. According to Ld. AR, the AO disallowed the aforesaid payments u/s. 40A(3) on the ground that the payment was credited by the party on a single day through the cash deposit in the bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was recognized that payment for country sprit or country liquor has to be made to the ware house run by the State Government and the case was covered by Rule 6DD ( b). Similar view has been taken in the following cases for which copy of judgments have been filed. EtheI Bari C.S. Shop, Jalpaiguri ITA No. 1322/Kol/2017 decided on 20.10.2018. In this case, it was pointed out by the Ld. AR that the sellers of the liquor included the parties for payment to whom the provisions of Sec. 40A(3) have been applied in the case of the assessee. Sarvari Supplementary C.S. Shop ITA No. 858/860/K/2016 dated 19.1.2018. Savitri Devi Rajesh Kumar and AMP and Ors ITA No. 2198/99/Kol/ 2016 dated 4.7.2018. Apart from the aforesaid judicial p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lyzing a number of judgement that if the genuinity of the purchase and payment is not disputed no disallowance can be made u/s. 40A(3). He also relied on following judgments: 1. Manash Kumar Giri ITA No. 1578/K/2016 dated 31.7.2018 2. Ram Nagar Pachoi CS (S) Shop ITA No. l85/186/K/2014 dated 3.8.2016. 3. Shri Ramapada Panda ITA No.67/K/2013 dated 07.10.2015. 5. We have heard rival submissions and gone through the facts and circumstances of the case. We note that the issue in no longer res integra and we note that the Tribunal s decision in a similar case where in the assessee purchased country liquor from dealers from their bonded warehouse appointed under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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