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2019 (12) TMI 138

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..... ction 40A(3) of the Act restrict payment or aggregate of payment made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeding ₹.20,000/-. Moreover, in the case of N. Mohammed Ali v. ITO [2016 (1) TMI 941 - MADRAS HIGH COURT] the Hon’ble Jurisdictional High Court has held that where the assessee made cash payments in excess of ₹.20,000/- for purchase of crackers, in absence of even names of agencies or agents or retailers living in villages to whom the said payments were made on a day-to-day basis, the impugned disallowance made by the authorities below u/s 40A(3) should be confirmed. We confirm the disallowance of expenses made to New Bharat Electricals & Enterprises, PSK Blue Metal and New Bharat Foundation. We direct the AO to allow the payment made to Raghvendra Blue Metal of ₹.10,000/-, which is less than the monetary limit stipulated under section 40A(3). Accordingly, the ground raised by the assessee is partly allowed. - I.T.A.No.365/Chny/2016 - Dated:- 11-10-2019 - Shri Duvvuru RL Reddy, Judicial Member And Shri S. Jayaraman, Accountant Member For the Appellant : Shri N. Devanathan, Ad .....

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..... 60/Mds/2015 vide order dated 06.11.2015, wherein, the Tribunal has observed as under: 8. We have considered the elaborate submissions made by both the parties and also perused the materials available on record. We have also gone through all the case laws cited by both the parties. We find that the provisions of Section 80IA(4) of the Act when introduced afresh by the Finance Act, 1999, the provisions under section 80IA(4A) of the Act were deleted from the Act. The deduction available for any enterprise earlier under section 80IA(4A) are also made available under Section 80IA(4) itself. Further, the very fact that the legislature mentioned the words (i) "developing" or (ii) "operating and maintaining" or (iii) "developing, operating and maintaining" clearly indicates that any enterprise which carried on any of these three activities would become eligible for deduction. Therefore, there is no ambiguity in the Income-Tax Act. We find that where an assessee incurs expenditure on its own for purchase of materials and towards labour charges and itself executes the development work i.e., carries out the civil construction work, it will be eligible for tax ben .....

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..... ction referred to as the transferee enterprise) for the purpose of operating and maintaining the infrastructure facility on its behalf in accordance with the agreement with the Central Government, State Government, local authority or statutory body, the provisions of this section shall apply to the transferee enterprise as if it were the enterprise to which this clause applies and the deduction from profits and gains would be available to such transferee enterprise for the unexpired period during which the transferor enterprise would have been entitled to the deduction, if the transfer had not taken place. Explanation.-For the purposes of this clause, infrastructure facility means- (a) a road including toll road, a bridge or a rail system; (b) a highway project including housing or other activities being an integral part of the highway project; (c) a water supply project, water treatment system, irrigation project, sanitation and sewerage system or solid waste management system; (d) a port, airport, inland waterway, inland port or navigational channel in the sea; (5) ……………… (13) ……………. *Explanation. - For .....

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..... 2000 (c.8), S. 367(2) (Stroud, 6th Edn., 2000, Supplement, 2003). It also includes group of bodies, partnership of enterprise card on by one or more persons or bodies and a body which is substantially the same at or successor, to, another body, Government Resources and Accounts Act, 2000 (c.20), S. 17(7) (Stroud, 6th Edn., 2000, Supplement, 2003). The main-central or principal part [Art. 110 (2), Const.]; physical or material frame of a man or animal; gang of thieves etc. 8.1 In our opinion, the said definition being a general preposition does not help the assessee s case. It is a trite preposition of law while interpreting a statute and more so a fiscal statue, neither the judicial forum concerned can insert its own words nor it can take away any from the statute. As it is seen, the earlier portion of the statutory provision prescribes a company registered in India or a consortium of such companies or by an authority or corporation or any other body established or constituted and so on. In our view, the latter part is liable to be read in the light of the earlier part by following the principles of ejusdem generis. 8.2 Further, it was noticed that in the case of M/s. Ramky Infras .....

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..... visions of section 40A(3) of the Act, the Assessing Officer disallowed the same and brought to tax. On appeal, the ld. CIT(A) confirmed the disallowance made under section 40A(3) of the Act. 6.1 The assessee carried the matter in appeal before the Tribunal. 6.2 We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. The assessee is a Civil Contractor & Engineer, running propriety firm in the name of New Bharat Foundation and New Bharat Electrical & Enterprises engaged in the business of civil contract and real estate. The assessee is engaged in the execution of certain civil works contract done with the Chennai Corporation, Sholinganallur Town Panchayat, Department of Atomic Research, Kalpakkam and for Chennai Port Trust. During the year under consideration, the assessee has made cash payments to various parties on a single day, which attract the provisions of section 40A(3) of the Act and accordingly the Assessing Officer disallowed the entire amount. On appeal, it was the submission of the assessee that the payments were made by the assessee in a remote place where there is no banking facility and thus, the .....

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