TMI Blog2021 (6) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... as today filed a typed set of papers. It can be seen therefrom that one of the petitioner's agent namely Kannan, Pollachi had given a certificate confirming that he had acted as agent for the petitioner and that the amount required for the payment to the farmers was received from the petitioner by self cheque and the same was distributed to the farmers who supplied copra. In fact, along with the said certificate, the details regarding the bank transactions as reflected in the ledger account has also been placed. Appearing for the petitioner would also draw my attention to the fact that even the Pollachi bank account of the petitioner was brought to the notice of the assessing officer in the previous proceedings. It is obvious there i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hileso, the jurisdictional assessing officer selected his case for scrutiny assessment under Section 143(3) of Income Tax Act and passed an order on 19.03.2015 determining his total income as ₹ 21,25,210/-. The petitioner did not choose to challenge the said scrutiny assessment order and it had become final. 3.The petitioner is having transactions with a number of persons, one of them being M/s.V.V.D Sons Private Limited, Tuticorin. The business premises of the said entity were searched on 17.11.2015. Since the petitioner had sold copra to them, assessment proceedings were initiated against the petitioner under Section 153C of Income Tax Act. In response to the notice dated 06.12.2017, the petitioner filed a return on 14.12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y thousand rupees may be made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft. The case of the assessee is that the payment through self cheques have been made to agents and these agents have made payments on behalf of the appellant to the farmers and the case of the assessee is covered under the exemption provided in Rule 6DD(k) that states that where the payment is made by any person to his agent who is required to make payment in cash for goods or services on behalf of such person , then such person is exempt from the application of the provisions of Section 40A(3). In the case under consideration in fact that is the factual situation. A similar issue also came before the Hon&# ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 013)37 taxmann.com422(Madras). In the above Judgment though the rule referred is 6DD(i) which is an inadvertent mistake however the matter pertains to rule 6DD(k) only. 10.In view of the facts in the present case and also in view of the jurisdictional Judgment on a similar issue the disallowance made under Section 40A(3) is not sustainable as the appellant is covered by the protection offered by the rule 6DD(k). Hence, the disallowance made by the AO is required to be deleted. 4.The Department, aggrieved by the said deletion made by the appellate authority, had preferred the second appeal before the Income Tax Appellate Tribunal and it is still pending. At this stage, the petitioner has been issued with one more notice for reopeni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he part of the assessee to make a return under Section 139 or in response to a notice issued under sub section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his assessment for that assessment year: Provided further that nothing contained in the first proviso shall apply in a case where any income in relation to any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment for any assessment year: Provided also that the Assessing Officer may assess or reassess such income other than the income involving matters which are the subject matters of any appeal, reference or revision, which is chargeable to tax and has escaped assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner and encash them and thereafter, pay the agriculturists in cash directly. 8.The learned counsel appearing for the petitioner states that such payments would fall under Rule 6DD(k) and therefore, deduction has to be necessarily allowed for such expenditure. This contention was specifically accepted by the appellate authority also in his order dated 29.11.2018. He would further point out that all the materials, about which the assessing officer is now feigning ignorance, were very much available before him during the earlier proceedings. The petitioner has today filed a typed set of papers. It can be seen therefrom that one of the petitioner's agent namely Kannan, Pollachi had given a certificate confirming that he had acted as agen ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
