Attar Singh Gurmukh Singh v. ITO

Sri Malay Mondal, Burdwan vs. I.T.O WD - 2(2), Asansol

In the result, the appeal of the Assessee is allowed

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Ravi

…CIT-A and reiterated the submissions made before the AO and relied on two decisions of the Hon’ble Calcutta High Court in the case of Girdharilal Goenka reported in 179 ITR 122 and the Hon’ble Supreme Court in the case of Attar Singh Gurmukh Sing reported in 191 ITR 667(SC). The assessee has also raised an alternative plea that the AO did not determine the correct profit on the impugned disallowance, which was made /calculated on the entire purchase cost. The CIT-A was of the view that on the aforesaid decisions of the Hon’ble Calcutta High Court and Hon’ble Supreme Court have rendered on old provisions of secti…

Ashok Kumar Mondal, Burdwan vs. ITO, WD-2(2), Asansol

In the result, the appeal of the assessee is allowed

Bench: Shri Waseem Ahmed & Shri K. Narasimha Chary

…. Asansol Bottling and Packaging Pvt. Limited, Burdwan. 9. Commercial expediency in relation to the application of section 40A(3) is well recognized by the various Courts vide in the cases as under:- (i) Attar Singh Gurmukh Singh –vs.- ITO reported in (1991) 191 ITR 667 (SC) (ii) CIT –vs.- CPL Tannery reported in (2009) 318 ITR 179 (Cal.); (iii) CIT –vs.- Crescent Export Syndicate in ITA No. 202 of 2008 dated 30.07.2008 (Calcutta High Court); (iv) Anupam Tele Services –vs.- ITO reported in (2014) 43 taxman.com 199 (Guj.); (v) Ashok Mondal –vs.- ITO in ITA No. 873/KOL/2012 (Kolkata Tribunal’s order dated 06.02.20…

M/S Sarbari Suplimentary C.S.Shop, Purulia vs. Income Tax Officer -Ward 3(4), Kolkata, Asansol

In the result, the appeal of the assessee is allowed

Bench: Shri Waseem Ahmed & Shri K. Narasimha Chary

…ustries Limited, Durgapur maintained in the State Bank. 9. Commercial expediency in relation to the application of section 40A(3) is well recognized by the various Courts vide in the cases as under:- (i) Attar Singh Gurmukh Singh –vs.- ITO reported in (1991) 191 ITR 667 (SC) (ii) CIT –vs.- CPL Tannery reported in (2009) 318 ITR 179 (Cal.); (iii) CIT –vs.- Crescent Export Syndicate in ITA No. 202 of 2008 dated 30.07.2008 (Calcutta High Court); (iv) Anupam Tele Services –vs.- ITO reported in (2014) 43 taxman.com 199 (Guj.); (v) Ashok Mondal –vs.- ITO in ITA No. 873/KOL/2012 (Kolkata Tribunal’s order dated 06.02.20…

I.T.O WD - 2(3), Asansol vs. M/S Premier Traders Self Help Group (H/O Kishore Mondal), Burdwan

In the result, Revenue’s appeal is dismissed

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Ravi

…ind that several courts have held where the genuineness of the party is not doubted regress of provision of Sec. 40A(3) of the Act cannot be attracted. In this connection, we rely in the following judgments. Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) “Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs.2,500 (Rs.10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to carry on b…

Income Tax Officer-Ward-12(1), Kolkata vs. M/S Standard Leather Pvt. Ltd., Kolkata

In the result, Revenue’s appeal stands dismissed

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Years:2010-11

…ing proper investigation by the department as to the identity of the payee and reasonableness of the payment.” In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) ITA No.2620/Kol/2013 A.Y. 2010-11 ITO Wd-12(1), Kol. vs. M/s Standard Leather Pvt. Ltd. Page 8 “Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs.2,500 (Rs.10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cas…

Smt Bimala Bala Mondal, Burdwan vs. ITO, WD-1(4), Durgapur

In the result the appeal by the assessee is allowed

Bench: Hon’Ble Sri N.V.Vasudevan, Jm] I.T.A No. 794/Kol/2014 Assessment Year : 2010-11 Smt. Bimala Bala Mondal -Vs.- I.T.O., Ward-1(4) Burdwan Durgapur [Pan : Aeapm 9753 N] ] (Respondent) (Appellant) For The Appellant : None For The Respondent : Shri.Ambitab Bhattacharya Jcit Date Of Hearing : 23.08.2016 Date Of Pronouncement : 02.09.2016. Order This Is An Appeal By The Assessee Against The Order Dated 5.2.2014 Of Cit(A)- Durgapur, Relating To Ay 2010-11. 2. The Assessee Is An Individual. He Is A Dealer In Country Spirits. Purchases Are Made From A Single Party Namely Ifb Agro Industries Ltd.. The Assessee In Respect Of Purchases From Ifb Agro Industries Ltd. Made A Payment Of Rs.14,31,840/- In Cash. According To The Ao The Above Payment Made Cannot Be Allowed As Deduction In Computing The Total Income Of The Assessee Because Of The Violation Of The Provision Of Section 40A(3) Of The Income Tax Act, 1961 (Act). The Action Of The Ao Was Confirmed By Cit(A). 3. Aggrieved By The Order Of Cit(A) The Assessee Has Preferred An Appeal Before This Tribunal. 4. None Appeared On Behalf Of The Asseseee Nor Was Any Request For Adjournment Made. I Have Heard The Submissions Of The Ld. Dr. Identical Issue With Regard To The Disallowance U/S 40A(3) Of The Act In The Case Of Assessee Who Are Engaged In The Business Of Country Spirits Who Have Paid Purchases In Cash Had Come Up For Consideration Before This Bench In The Case Of Ramnagar Pachwai & C.S. (Shop) Vs Ito Vide Ita No.148/Kol/2015 & 185&186/Kol/2014 For A.Y.2007-08 & 2008-09

…g proper investigation by the department as to the identity of the payee and reasonableness of the payment.” 17. In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) " 3.3.4. Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs. 2,500 (Rs. 10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to…

Motor Ch. Mondal, Asansol vs. ITO, WD-2(2), Asansol

In the result the appeal by the assessee is allowed

Bench: Hon’Ble Sri N.V.Vasudevan, Jm & Dr.Arjun Lal Saini, Am] I.T.A No. 200/Kol/2014 Assessment Year : 2009-10 Motor Ch. Mondal -Vs.- I.T.O., Ward-2(2) Sahid Khudi Ram Sarani Asansol Neamatpur, P.O.Sitarampur-713359 [Pan : Afapm 9913K] (Respondent) (Appellant) For The Appellant : Shri U.Dasgupta, Advocate For The Respondent : Shri.Rajat Kumar Kureel(Dr) Date Of Hearing : 11.08.2016 Date Of Pronouncement : 02.09.2016. Order Per N.V.Vasudevan, Jm

…g proper investigation by the department as to the identity of the payee and reasonableness of the payment.” 17. In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) " 3.3.4. Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs. 2,500 (Rs. 10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to…

Smt Shila Mondal, Burdwan vs. ITO, WD-2(2), Asansol

In the result, assessee’s appeal stands allowed

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Years:2010-11

…proper investigation by the department as to the identity of the payee and reasonableness of the payment.” 11.2 In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) “Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs.2,500 (Rs.10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to carry on b…

Arun Kumar Mondal, Burdwan vs. ITO, WD-2(2), Asansol

In the result, assessee’s appeal stands allowed

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Ravi

…g proper investigation by the department as to the identity of the payee and reasonableness of the payment.” 11.2 In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) “Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs.2,500 (Rs.10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to carry on b…

Naba Kumar Mondal, Asansol vs. ITO, WD-2(2), Asansol

In the result the appeal by the assessee is allowed

…g proper investigation by the department as to the identity of the payee and reasonableness of the payment.” 17. In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) " 3.3.4. Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs. 2,500 (Rs. 10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to…

Tushar Kanti Banerjee, Burdwan vs. ITO, WD-1(2), Asansol, Burdwan

In the result, the appeal of the assessee is allowed

Bench: Shri M. Balaganesh, Am & Shri K. Narasimha Chary, Jm]

…proper investigation by the department as to the identity of the payee and reasonableness of the payment.” 3.4. In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) " 3.3.4. Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs. 2,500 (Rs. 10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to…

M/S Bolkunda Pachwai & (S) C. S. Shop, Burdwan vs. ITO, WD.1(2), Asansol

In the result, the appeal of the assessee in ITA No

Bench: Shri M. Balaganesh, Am & Shri K. Narasimha Chary, Jm]

…proper investigation by the department as to the identity of the payee and reasonableness of the payment.” 3.4. In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) " 3.3.4. Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs. 2,500 (Rs. 10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to…

M/S Bolkunda Pachwai & (S) C. S. Shop, Burdwan vs. ITO, WD.1(2), Asansol

In the result, the appeal of the assessee in ITA No

Bench: Shri M. Balaganesh, Am & Shri K. Narasimha Chary, Jm]

…proper investigation by the department as to the identity of the payee and reasonableness of the payment.” 3.4. In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) " 3.3.4. Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs. 2,500 (Rs. 10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to…

Pronab Nandy, Hooghly vs. J.C.I.T Range - 1, Hooghly

In the result, appeal of the assessee is dismissed

Bench: Shri P.M.Jagtap, Am & Shri S.S.Viswanethra Ravi, Jm]

…ted to please note that, the constitutional validity of scope and applicability of sec. ITA Nos. 1910/Kol/2012 4 Pronab Nandy 40A(3) of the LT. Act, 1961 has been discussed widely by Hon'ble Supreme Court of India in Attar Singh Gurmukh Singh vs ITO [1991] 191 ITR 667/59 Taxman 11 (when the entire amount was disallowed prior to assessment year 1996- 97). It upheld validity of the provisions of the then Rule 6DD(J). It has been clearly opinionated that Sec. 40A(3) must not be read in isolation or to the exclusion of Rule 6Dd. The section 40A(3) must be read along with the rule 600. Hence, if both the sections a…

M/S. Ramnagar Pachai & C.S. (S) Shop vs. ITO, Ward-2(3), Asansol

In the result, all the appeals of assessee are allowed

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

…of West Bengal and the payment is made to the Instrumentality of the State. 10. He placed reliance on the following decisions in support of his various contentions:- a) Hon’ble Supreme Court in the case of Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) b) Hon’ble Rajasthan High Court in the case of CIT vs Kalyan Prasad Gupta reported in 239 CTR 447 (Raj) c) Hon’ble Karnataka High Court in the case of CIT vs Devendrappa M Kalal reported in 219 Taxman 122 (Kar) 6 ITA No. 148/K/2015, ITA Nos. 185 & 186/Kol/2014 Ramnagar Pachwai & (S) C.S. Shop, AY 2007-08, 2008-09 & 2010-11 d) Co-ordinate Be…

M/S Ramnagar Pachai & C. S. (S) Shop, Burdwan vs. ITO, WD-2(3), Asansol

In the result, all the appeals of assessee are allowed

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

…of West Bengal and the payment is made to the Instrumentality of the State. 10. He placed reliance on the following decisions in support of his various contentions:- a) Hon’ble Supreme Court in the case of Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) b) Hon’ble Rajasthan High Court in the case of CIT vs Kalyan Prasad Gupta reported in 239 CTR 447 (Raj) c) Hon’ble Karnataka High Court in the case of CIT vs Devendrappa M Kalal reported in 219 Taxman 122 (Kar) 6 ITA No. 148/K/2015, ITA Nos. 185 & 186/Kol/2014 Ramnagar Pachwai & (S) C.S. Shop, AY 2007-08, 2008-09 & 2010-11 d) Co-ordinate Be…

M/S Ramnagar Pachai & C. S. (S) Shop, Burdwan vs. ITO, WD-2(3), Asansol

In the result, all the appeals of assessee are allowed

Bench: Shri N. V. Vasudevan, Jm & Shri M. Balaganesh, Am]

…of West Bengal and the payment is made to the Instrumentality of the State. 10. He placed reliance on the following decisions in support of his various contentions:- a) Hon’ble Supreme Court in the case of Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) b) Hon’ble Rajasthan High Court in the case of CIT vs Kalyan Prasad Gupta reported in 239 CTR 447 (Raj) c) Hon’ble Karnataka High Court in the case of CIT vs Devendrappa M Kalal reported in 219 Taxman 122 (Kar) 6 ITA No. 148/K/2015, ITA Nos. 185 & 186/Kol/2014 Ramnagar Pachwai & (S) C.S. Shop, AY 2007-08, 2008-09 & 2010-11 d) Co-ordinate Be…

Indrajit Paul, Kolkata vs. Income Tax Officer, Ward - 2(3), Kolkata, Asansol

In the result, appeal of the assessee is allowed in part

Bench: Shri Waseem Ahmed, Am & Shri S.S.Viswanethra Ravi, Jm आयकर अपील सं./Ita No.2477/Kol/2013 ("नधा"रण वष" / Assessment Year :2008-2009)

…ot having bank account then it was realised in cash. Ld. AR also submitted that the payment were made to the genuine parties and it should be allowed in terms of Hon’ble Supreme Court Judgment in the case of Attar Singh Gurmukh Singh Vs. Income Tax Officer, 191 ITR 667. At the end ld. AR prayed for the deletion of the addition made by the AO. On the other hand the ld. DR vehemently supported the orders of the lower authorities. 6. We have heard rival parties and perused the materials available on record. From the foregoing discussion, we find that the AO has disallowed cash payment under the provisions of Se…

Kajora Pachai & C.S. Shop, Burdwan vs. ITO, Ward - 1(3), Durgapur, Burdwan

In the result, assessee’s appeal stands allowed

Bench: Shri Waseem Ahmed & Shri S.S.Viswanethra Raviassessment Year :2008-09

…g proper investigation by the department as to the identity of the payee and reasonableness of the payment.” 7.2 In this regard, it is pertinent to get into the following decisions on the impugned subject:- Attar Singh Gurmukh Singh vs ITO reported in (1991) 191 ITR 667 (SC) “Section 40A(3) of the Income-tax Act, 1961, which provides that expenditure in excess of Rs.2,500 (Rs.10,000 after the 1987 amendment) would be allowed to be deducted only if made by a crossed cheque or crossed bank draft (except in specified cases) is not arbitrary and does not amount to a restriction on the fundamental right to carry on b…