THE COMMISSIONER OF INCOME TAX, vs. SRI. VENKATESH V KABADE

: 1 : IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 9TH DAY OF OCTOBER, 2013 PRESENT THE HON’BLE MR.JUSTICE K.L.MANJUNATH AND THE HON’BLE MR.JUSTICE A.N.VENUGOPALA GOWDA ITA No.5022/2012 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX, C R BUILDING, NAVANAGAR, HUBLI. 2. THE INCOME TAX OFFICER, WARD-2(2), HUBLI. ... APPELLANTS (BY SRI. Y.V.RAVIRAJ, ADV.) AND: SRI. VENKATESH V KABADE HUBLI, C/O. M/S K.R. PRASAD, BHARATH APARTMENTS, GROUND FLOOR, RACE COURT ROAD, BANGALORE - 1. ... RESPONDENT (BY SRI. H.R.KAMBIYAVAR, ADV. FOR SHRI K.R.PRASAD, ADV.)

: 2 : THIS ITA IS FILED UNDER SECTION 260A OF THE INCOM-TAX ACT, 1961 AGAINST ORDER PASSED IN ITA.NOS.313/BANG/2012 ON THE FILE OF THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH, 'A', ALLOWING THE APPEAL FILED BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2008-2009. THIS ITA COMING ON FOR ADMISSION, THIS DAY, K.L.MANJUNATH J., DELIVERED THE FOLLOWING: JUDGMENT The Revenue has come up in this appeal, challenging the order passed by the Income Tax Appellate Tribunal, “A” Bench, Bangalore in I.T.A. No.313/Bang/2012 for the assessment year 2008-09.

The Assessing Officer has disallowed certain expenditure claimed by the respondent on the ground that assessee has made payment in cash in excess of Rs.20,000/- in order to purchase the scrap from the Railway Department. According to the Assessing Officer, since the cash was paid in excess of Rs.20,000/- in regard to single transaction, held that the same is in violation of Section 40A(3).

: 3 : 2. Aggrieved by the order of Assessment, the assessee filed an appeal before the Commissioner of Income Tax Appeal, which came to be dismissed. 3. Challenging the concurrent findings, the assessee filed an appeal before the Income Tax Appellate Tribunal, which appeal came to be allowed on the ground that the assessee has purchased scrap from the Railways (Union of India) and such purchase cannot be doubted. Accordingly, the appeal has been allowed, against which the present appeal is filed by the Revenue. 4. In similar circumstances, this Court in I.T.A. No.5018/2012 dated 18.09.2013, The Commissioner of Income Tax and Another vs. Devendrappa M. Kalal has rejected the appeal filed by the Revenue, by confirming the orders of the Income Tax Appellate Tribunal. Therefore,

: 4 : we are of the view that no substantial questions of law arises in the present appeal. Accordingly, the appeal is dismissed. SD/- JUDGE SD/- JUDGE Ct:byg/- Rsh