DAGA TRADING CO.,KOLKATA vs. ACIT, CIRCLE - 43, KOLKATA, KOLKATA

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ITA 1056/KOL/2018Status: DisposedITAT Kolkata05 October 2018AY 2010-112 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal deleted the disallowance under Section 40A(3) as the payee was an employee, not covered by the section. The estimated disallowance on expenses was restricted from 20% to 5%. The addition for account differences was confirmed as the ground was not pressed.

What were the facts?

The assessee's appeal for AY 2010-11 challenged disallowances made under Section 40A(3) for cash payments to an employee and an estimated disallowance on various expenses due to lack of details. The assessee also challenged a small addition for differences in accounts.

What were the issues?

Whether cash payments to an employee are hit by Section 40A(3) and the reasonableness of estimated disallowances on expenses due to lack of supporting documents.

Which sections of the Income-tax Act were involved?

Section 40A(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA BENCH “SMC” KOLKATA

Before: Shri S.S, Godara

O R D E R

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