CIT v. Aloo Supply Co. (121 ITR 680)

DCIT-CC-4(2), MUMBAI, MUMBAI vs. RUBBERWALA REALTY, MUMBAI

In the result, all the appeals of the assessee for AYs 2015-16 to

ITA 3531/MUM/2023[2018-19]Status: DisposedITAT Mumbai07 Jun 2024AY 2018-19

Bench: We Advert To The Grounds Taken In The Cross Appeals, It Would First Be Relevant To Cull Out The Basic Facts Of The Case & Effect Of Law In Brief In Respect Of Certain Ays. Search U/S 132 Of The Income Tax Act, 1961 (Hereinafter Referred To As "The Act") Was Conducted Against The Rubberwala Group, On 17-03-2021 Thereby Triggering Section 153A Of The Act. Prior To The Date Of Search, The Income-Tax Assessments For Ays 2015-16 To 2019-20 Were Either Completed U/S 143(1)/143(3) Of The Act And/Or The Time Limit For Issue Of Notice U/S 143(2) Of The Act Had Expired. Accordingly, The Income-Tax 3

For Respondent: Shri Sanyogita Nagpal, CIT

Section 132Section 133(6)Section 143(1)Section 143(2)Section 153ASection 68Section 69C

…cts of the present case, we have noted that the assessment was made on the basis of undisclosed investment. Where the basis is undisclosed investment, one cannot apply the prescription of section 40A(3) of the Act. In the case of CIT v. Aloo Supply Co. [1980] 121 ITR 680 (Ori.), the Hon'ble High Court has held that if an assessee makes payments at different times during the day and he has no idea that he has to pay to the same person on more than one occasion, he cannot be subjected to the statutory provision 50 ITA No.3443 & Ors/Mum/2023 A.Ys. 2015-16 to 2021-22 Rubberwala Realty contained in section 40A(3) of t…

DCIT-CC-4(2), MUMBAI vs. RUBBERWALA HOUSING AND INFRASTRUCTURE LIMITED, MUMBAI

In the result, all the appeals of the assessee stands allowed and

ITA 3508/MUM/2023[2015-16]Status: DisposedITAT Mumbai07 Jun 2024AY 2015-16

Bench: Shri Br Baskaran, Am & Shri Aby T Varkey, Jm आयकर अपील सं/ I.T. A. No. 3448/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3447/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3446/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3445/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3444/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2019-20) & आयकर अपील सं/ I.T. A. No. 3459/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2020-21) & आयकर अपील सं/ I.T. A. No. 3432/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2021-22) Rubberwala Housing & Infrastructure Ltd. Ground Floor, Rubberwala House, Dr. A Nair Road, Agripada, Mumbai-400011. बनाम / Vs. Dcit, Central Circle-4(2) 19Th Floor, Air India Building, Nariman Point, Mumbai-400021. आयकर अपील सं/ I.T. A. No. 3508/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3505/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3504/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3549/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3503/Mum/2023

For Appellant: Shri Mani Jain FCAFor Respondent: Smt Sanyogita Nagpal

Section 132Section 143(1)Section 143(2)Section 153ASection 68Section 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI BR BASKARAN, AM AND SHRI ABY T VARKEY, JM आयकर अपील सं/ I.T. A. No. 3448/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3447/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3446/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3445/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3444/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2019-20) & आयकर अपील सं/ I.T. A. No. 3459/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2020-21) & आ…

RUBBERWALA HOUSING AND INFRASTRUCTURE LIMITED,MUMBAI vs. DCIT CC-4(2), MUMBAI

In the result, all the appeals of the assessee stands allowed and

ITA 3448/MUM/2023[2015-16]Status: DisposedITAT Mumbai07 Jun 2024AY 2015-16

Bench: Shri Br Baskaran, Am & Shri Aby T Varkey, Jm आयकर अपील सं/ I.T. A. No. 3448/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3447/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3446/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3445/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3444/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2019-20) & आयकर अपील सं/ I.T. A. No. 3459/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2020-21) & आयकर अपील सं/ I.T. A. No. 3432/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2021-22) Rubberwala Housing & Infrastructure Ltd. Ground Floor, Rubberwala House, Dr. A Nair Road, Agripada, Mumbai-400011. बनाम / Vs. Dcit, Central Circle-4(2) 19Th Floor, Air India Building, Nariman Point, Mumbai-400021. आयकर अपील सं/ I.T. A. No. 3508/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3505/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3504/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3549/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3503/Mum/2023 2

For Appellant: Shri Mani Jain FCAFor Respondent: Smt Sanyogita Nagpa

Section 132Section 143(1)Section 143(2)Section 153ASection 68Section 69ASection 69C

…IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, MUMBAI BEFORE SHRI BR BASKARAN, AM AND SHRI ABY T VARKEY, JM आयकर अपील सं/ I.T. A. No. 3448/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2015-16) & आयकर अपील सं/ I.T. A. No. 3447/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2016-17) & आयकर अपील सं/ I.T. A. No. 3446/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2017-18) & आयकर अपील सं/ I.T. A. No. 3445/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2018-19) & आयकर अपील सं/ I.T. A. No. 3444/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2019-20) & आयकर अपील सं/ I.T. A. No. 3459/Mum/2023 (निर्धारण वर्ष / Assessment Year: 2020-21) & आ…

V BIRD SHIPPING AGENCIES PRIVATE LIMITED ,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1(3)(2), MUMBAI

In the result, the appeal filed by the assessee is hereby allowed for statistical purposes

ITA 5117/MUM/2017[2014-15]Status: DisposedITAT Mumbai01 Apr 2021AY 2014-15

For Appellant: Shri Rajesh Athaule (AR)For Respondent: Ms. Leena Srivastav (DR)

Section 143(2)Section 40A(3)

…the Ld. Representative of the assessee has placed reliance upon the decision of the Hon’ble High Court of Calcutta in the case of Giridharilal Goenka Vs. CIT (1986) 179 ITR 122 (Cal) and Hon’ble Orissa High Court in the case of CIT Vs. Aloo Supply Co. (1980) 121 ITR 680/3 Taxman 572 (Ori). However, on the other hand, the Ld. Representative of the revenue has strongly relied upon the order passed by the CIT(A) in question. It is also recalled matter by virtue of recalling the order of the Hon’ble ITAT passed on 11.03.2019 in 2 A.Y.2014-15 which the appeal of the assessee was dismissed. Since the assessee was expa…

M/S MANGLIK ENTERPRISES,MEERUT vs. ITO, MEERUT

In the result the ground is allowed for statistical purposes

ITA 5876/DEL/2016[1999-2000]Status: DisposedITAT Delhi03 Feb 2017AY 1999-2000

Bench: Shri S.V. Mehrotra

For Appellant: Shri Vinod Kumar GoelFor Respondent: Shri S.K. Jain, Sr. DR

Section 148Section 40ASection 40A(3)

…re me are fully supported by material on record. I am of the view that the legal point in this issue is not res-integra and is felly cowered decisions of several High Courts, which were cited before me, are follows:- (1). In the case of CIT Vs.Aloo Supply Co. 121 ITR 680 their Lordships observed as under:- "Therefore, if an assessee makes payments at different times during the day and he has no idea that he has to pay to the same person on more than one occasion, he cannot be subjected to the statutory provision contained in s. 40A(3) of the Act, unless any one payment is above Rs.2,500. The statutory limit of Rs…

SHI vs. HAKTI TRANSPORT SANGH,THANEVS.I.T.O. WD.1, PANVEL

In the result, the appeal filed by the assessee-firm in ITA N0

ITA 7515/MUM/2011[2005-06]Status: DisposedITAT Mumbai13 Jun 2016AY 2005-06

Bench: Shri C.N. Prasad & Shri Ramit Kocharआयकर अपील सं./I.T.A. No.7515/Mum/2011 ("नधा"रण वष" / Assessment Year : 2005-06) Shivshakti Transport Sangh, Income Tax Officer, बनाम/ K.B. Amlani C.A., Ward– 1, V. 14 Malkans, Panvel. Lazras Rd., Charai, Thane (W) – 400 602. "थायी लेखा सं./Pan : Abbfs 5473-P .. (अपीलाथ" /Appellant) (""यथ" / Respondent)

For Respondent: Shri Vishwas Jadhav(D.R.)

Section 143(2)Section 143(3)Section 40A(3)Section 44

…decisions:- 1. Amar Ginning & Oil Mills v. ITO, (1989) Taxation 93(4)-76(Chd Trib.) 2. ITAT Madras Bench in the case of Taj Trading Co. v. ITO (1989) 35TTJ (Mad-Trib) 296. 3. Girdharila Goenka v. CIT (1989) 179 ITR 122(Cal.) 4. CIT v. Aloo Supply Co. (1980) 121 ITR 680 (Ori) 5. CIT v. Triveniprasad Pannalal (1997) 228 ITR 680 (M.P) 6. CIT v. Ashish Coal Coke Traders (1987) 163 ITR 174 (MP) 7. Navjivan Synthetics v. ACIT (2002) 168 taxation 5 (Ahd-Trib) 8. Western Indian Bakers v. DCIT (2003) 87 ITD 607 (Mum-Trib) 9. Shree Mahaveer Corporation v. ITO (2002) 258 ITR (AT) 55 (Bang Trib) 10. CIT v. P. Pravin & Co.…

ACIT, NOIDA vs. M/S NARAYAN OVERSEAS, NOIDA

In the result, the appeal of the Revenue is jettisoned

ITA 860/DEL/2011[2006-07]Status: DisposedITAT Delhi29 Apr 2016AY 2006-07

Bench: Shri Chandra Mohan Garg & Shri O.P. Kant

For Appellant: Shri Rohit Jain, AdvFor Respondent: Shri P. DAM Kanunjna, Sr. DR

Section 143(3)Section 40Section 40A(3)

…ad wrongly applied the provisions of section 40A(3) of the Act as each of the cash payments considered by the AO were below Rs. 20,000/-. The ld. CIT(A) has relied on the decision of the Orissa Hon'ble High Court in the case of Aloo Supply Company reported at 121 ITR 680 wherein it has been held that statutory limit of payment in cash applied to payment made to a party at a time. The ld. CIT(A) has also relied on the decision of the Hon'ble Allabahad High Court in the case of KA Nek Mohd & Sons Vs. CIT 135 ITR 501 in arriving at the 10 conclusion. Therefore, we find that no payments exceeded the statutory limit…

ACIT vs. M/S COASTAL ROAWAYS,

In the result, appeal by the Revenue is dismissed and the CO is partly allowed

ITA 1139/BANG/2013[2008-09]Status: DisposedITAT Bangalore08 Jan 2016AY 2008-09

Bench: Shri N.V.Vasudevan & Shri Inturi Rama Raoasst. Commissioner Of Income-Tax, Circle 1(1), Mangalore. … Appellant Vs. M/S. Coastal Roadways, D.No.4-64/11, Bantwal Chambers, Balikampady, Mangalore. … Respondent Pan:Aaffc 5977 M Cross Objn.No.35/Bang/2013 (In Ita No.1139/Bang/2013) (Assessment Year: 2008-09) (By The Assessee) ****** Revenue By: Dr. P.K.Srihari, Addl.Cit. Assessee By: Shri R.E.Balasubramaniyan, Ca. Date Of Hearing : 05/01/2016 Date Of Pronouncement: 08/01/2016 O R D E R Per N.V.Vasudevan, Jm:

For Appellant: Shri R.E.Balasubramaniyan, CAFor Respondent: Dr. P.K.Srihari, Addl.CIT

Section 143(3)Section 40A(3)

…amount does not exceed Rs. 2,500 in each transaction, the rigours of section 40A(3) will not apply". While holding so, the Court approvingly referred to the identical view of the Orissa High Court expressed in an earlier case of CIT vs. Aloo Supply Co. (1980) 121 ITR 680 (Ori). 10. Notwithstanding the official proclamation that sub-section (3) of section 40A is being substituted to nullify the loophole created by the judicial decisions, the legal position remains the same even after the said substitution. The newly substituted sub- section (3) contains the phrase "a payment or aggregate of payments made to a per…

M/S TIRUPATI CONSTRUCTION.,HOOGHLY vs. I.T.O WD - 1(4),HOOGHLY., HOOGHLY

In the result, the appeal of the assessee is partly allowed

ITA 372/KOL/2013[2006-07]Status: DisposedITAT Kolkata15 Oct 2015AY 2006-07

Bench: : Shri M. Balaganesh

For Appellant: S/Sh Somnath GhoshFor Respondent: Shri D.Lahiri,JCIT, ld.DR

Section 131Section 143(3)Section 201(1)Section 271CSection 40

…/- has been brought under the ambit of disallowance if payment is made otherwise than by an account payee cheque or account payee bank draft. We rely on the decision of Hon’ble Orissa High Court rendered in the case of CIT vs Aloo Supply Co reported in (1980) 121 ITR 680 (Ori) and the decision of this Tribunal rendered in the case of Shanti Ram Mehata vs ACIT reported in (2009) 119 ITD 62 (KOL)(TM ) in this regard. In both the decisions, it has been held that the disallowance contemplated u/s 40A(3) of the Act is applicable for each payment and not for the aggregate of the various payments made to the same party…

COMMISSIONER OF INCOME TAX-XIII vs. HITESH BANSAL

The appeal of the Revenue is dismissed

ITA/801/2014HC Delhi22 Dec 2014

Section 40ASection 40A(3)

…Page 2 of 5 has referred to judgments, which take the other view and reliance has been placed upon the decision of the Orissa High Court in Commissioner of Income Tax, Orissa versus Aloo Supply Co. (1980) 121 ITR 680 (Orissa) and the Madhya Pradesh High Court in CIT versus Treveni Prasad Pannalal (1997) 228 ITR 680 (MP). Another decision of the Allahabad High Court in Kiran Jaiswal versus ITO, ITA No.191/2008 decided on 3rd May, 2012 reported as 2013(1) ALJ 357 has been quoted. The decision in Aloo Supply Co. (supra) was pronounced on 18th December, 197…

CIT v. Aloo Supply Co.

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