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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. N.S.SAINI & SH. N.K.CHOUDHRY
PER N.K.CHOUDHRY, JM: The instant appeal has been preferred by the Assessee/Appellant against the order dated 18.02.2016 passed by the Ld. CIT(A)-1, Amritsar u/s 250(6) of the I.T. Act, 1961 (hereinafter called as ‘the Act’). 2. The assessee has raised the following grounds of appeal. “1. That the ld. Commissioner of Income Tax (Appeals)-1, Amritsar has grossly erred in confirming the disallowance of Rs.3,14,449/ made by Deputy Commissioner of Income Tax, Circle-3, Amritsar u/s 40A(3) of Income Tax Act, 1961. 2. That both ld. Commissioner of Income Tax (Appeals)-1, Amritsar and Deputy Commissioner of Income Tax, Circle-3, Amritsar have failed to appreciate that the assessee had made bonafide cash payments for freight paid on wheat purchased from Rajasthan under exceptional circumstances.
ITA No.211 /Asr/2016 (A.Y.2012-13) 2 M/s. Mohan Roller Flour Mills vs. DCIT
The issue raised by the assessee relates to the confirmation of the disallowance of Rs.3,14,449/- made by the Assessing Officer u/s 40A(3) of the Act. The assessee submitted that both the authorities below having failed to appreciate the bonafide cash payment for freight paid on wheat purchased from Rajasthan under exceptional circumstances. 4. On the contrary, the Ld. DR relied upon the order passed by the authorities below. 5. We have heard the parties and perused the material available on record. The Assessing Officer had disallowed the allowances of Rs.8,10,093/- u/s 14A , Rs.4,41,017/- u/s 40A(3) of the Act and Rs.2426/- . The aforesaid amounts were added in the income of the assessee. In appeal , the Ld. CIT(A) partly allowed the relief to the assessee, however, affirmed the disallowance to the tune of Rs.3,14,449/- u/s 40A(3) of the Act. The assessee has demonstrated details of freights paid and disallowed by the AO u/s 40A(3) of the Act (Page No.2 of PB). We realized that amount of Rs.33,534/- which was incurred on dated 20.06.2011 as repair expenses and payment of Rs.39,734/- was made on Saturday i.e. 12.11.2012 as claimed by the appellant that because on that particular date bank was open upto 12 Noon only therefore the amount has been incurred in cash. Considering the peculiar facts and circumstances, in our view as claimed amount of Rs.33,534/- was incurred for repair in urgent circumstances and further the amount of Rs.39,734/- was paid on dated 12.11.2011 (Saturday being half working day) hence it would be justifiable to allow the said allowances therefore we are inclined to delete the said disallowances and sustain the remaining disallowances.
ITA No.211 /Asr/2016 (A.Y.2012-13) 3 M/s. Mohan Roller Flour Mills vs. DCIT
Consequently, assessee shall get benefit of Rs. 73,268/- (Rs.33,534+ 39,734) out of total disallowance of Rs. 3,14,449/- and the remaining amount of 2,41,181/- disallowance u/s 40A(3) is sustained.
In the result, the appeal filed by the assessee stands partly allowed. Order pronounced in the open Court on 15.02.2019.
Sd/- Sd/- (N.S.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 15.02.2019 /PK/ Ps. Copy of the order forwarded to: (1) M/s Mohan Roller Flour Mills, O/s Bhagtanwala Gate, Amritsar (2) The Dy. CIT, Circle-III, Amritsar (3) The CIT(A)-1, Amritsar (4) The CIT concerned (5) The SR DR, I.T.A.T., Amritsar True copy By order
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