HARISHKUMAR MATHURADAS BARAI,DWARKA vs. INCOME TAX OFFICER, WARD - 1 (4), DWARKA, INCOME TAX OFFICE, JAMNAGAR

The grounds of appeal raised by the assessee are as follows:

1. “1. The LdCIT(A) erred in law as well as on facts in upholding an addition of Rs.6,00,000/-, made by Ld.AO u/s 40A(3) of the Act.” 3. When this appeal was called out for hearing, the Ld. Counsel for the assessee has invited our attention to the order dated 18.09.2024 passed by the Co-ordinate Bench of this Tribunal in assessee’s group case in Parsottam Madhavji Bhanusali, for A.Y. 2015-16 whereby based on the similar and identical facts, the addition made by the Assessing Officer u/s 40A(3) of the Act, was deleted by the co-ordinate Bench of this Tribunal and adjudicated the issue in favour of assessee. The Ld. Counsel for the assessee submitted that the present appeal is also squarely covered by the above judgment and copy of which was also placed before the Bench.

On the other hand, ld. Senior DR of the Revenue relied upon the orders of lower authorities.

Wesee no reason to take any other view of the mater then the view so taken by this co-ordinate Bench of this Tribunal in assessee’s group case in Parsottam Madhavji Bhanusali vs. ITO (supra).In this order, the Tribunal inter alia observed as follows: “8. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(A) and other material brought on record. We find merit in the submissions of ld. Counsel, to the effect that each purchase bill is below Rs.20,000/-, however, assessee has consolidated 7 to 10 bills of various customers, and entered in the books of accounts, therefore the consolidated amount is getting reflected, which is more than Rs.20,000/- although, each bill, of each customer, is below Rs.20,000/- which is, within the permissible limit of the provisions of section 40A(3) of the Act. We have gone through each bill of each customer in the paper book filed by the assessee, (vide paper book pages 26 to 269) and noted that none of the bill amount exceeds Rs.20,000/- therefore, we find that all payments were made by the assessee, within the permissible limit of the provisions of section 40A(3) of the Act, hence, based on this factual position, addition made by the assessing officer needs to be deleted.