THE AZAD NAKODAR BUS SERVICE PRIVATE LIMITED,NAKODAR vs. DEPUTY COMMSSIONER OF INCOME TAC CIRCL-4E, JALANDHAR

ITA 107/ASR/2022Status: DisposedITAT Amritsar20 February 2023AY 2018-199 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that Rule 6DD(b) requires direct payment to the government, and payment through an intermediary agent does not qualify for the exception. Therefore, the disallowance under Section 40A(3) was justified.

What were the facts?

The assessee, a bus company, made cash payments to an agent for depositing government taxes, PF, and ESI. The Assessing Officer disallowed these expenses under Section 40A(3) as they were not directly paid to the government. The CIT(A) upheld this disallowance.

What were the issues?

Whether cash payments made to an agent for depositing government dues are covered under Rule 6DD(b) to avoid disallowance under Section 40A(3).

Which sections of the Income-tax Act were involved?

Section 40A(3)

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Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: DR. M. L. MEENA & SH. ANIKESH BANERJEE

Hearing: 07.02.2023Pronounced: 20.02.2023

Per Dr. M. L. Meena, AM:

The present appeal has been filed by the assessee against the order

of the Ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi dated 21.03.2022 in respect of Assessment Year 2018-19. 2. The assessee has raised the following grounds of appeal:

2 The Azad Nakodar Bus S. P. Ltd. v. Dy. CIT “1. The appellate order is perverse, unlawful, arbitrary, without appreciation of the facts of the case and the Law.

2.

The Ld. CIT(A) erred to confirm addition of Rs.4374133/- made by A.O., ignoring the submissions of the assessee that the cash payments made to Government are covered under rule 6DD(b) under section 40A(3) of the Act. The addition of Rs.4374

The order continues below.

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