ITAT Kolkata Judgments — September 2017

The Tribunal held that the CIT(E)'s order was unsustainable as it relied solely on a survey statement that was not subject to cross-examination, violating principles of natural justice. Furthermore, the donation was utilized for the society's charitable objects, making the cancellation of registration improper.

The Tribunal held that the cash payments were made to a wholesale licensee acting as an agent of the State Government, falling under the exceptions provided in Rule 6DD(b) and 6DD(k) of the IT Rules. Therefore, the disallowance made under Section 40A(3) was deleted.

The Tribunal held that the appeal should be dismissed in limine due to low tax effect, as per CBDT Circular No. 21/2015. The circular's revised monetary limits apply retrospectively to pending appeals.