SRI RAVINDER KUMAR,BOKARO vs. ITO, BOKARO

ITA 239/RAN/2016Status: DisposedITAT Ranchi11 January 20193 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal deleted the Section 40A(3) disallowance for fire cracker purchases, finding justifiable reasons for cash payments. It also deleted a gift addition as the same amount was already taxed in the donor's hands and restricted another gift addition.

What were the facts?

The assessee appealed against CIT(A) orders concerning disallowances under Section 40A(3) for cash purchases, additions on account of gifts, and issues related to Section 44AF and credit balances. The Tribunal considered cash payments for fire crackers, gifts from relatives, and other additions.

What were the issues?

Whether cash payments for fire cracker purchases were justifiable under Rule 6DD and if gift additions were correctly made when the same income was taxed in the donor's hands.

Which sections of the Income-tax Act were involved?

Section 40A(3),Section 143(3),Section 147,Section 263,Section 44AF,Section 234B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI

Before: Shri S.S.Godara & Dr. A.L. Saini

PER BENCH:- These three assessee’s appeals for assessment year(s) 2007-08, 2008- 09 & 2009-10 arise against the Commissioner of Income Tax (Appeals)- Hazaribag’s separate orders; all dated 23.06.2016, passed in case Nos.31, 36, 37/HZB/2015-116 involving proceedings u/s 263 r.w.s 143(3) r.w.s 147 of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file(s) perused.

2.

We come to first common issue of sec.40A(3) disallowance in fire crackers purchases in cash amounting to Rs.16,39,774/-, Rs.27,91,348/- &10,50,000/- made by the Assessing Officer affirmed in the CIT(A

The order continues below.

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