Sri Renukeswara Rice Mills v. ITO

93 ITD 263Income Tax Appellate Tribunal2005#4384 most cited

What is Sri Renukeswara Rice Mills v. ITO authority for?

Cash payments made to farmers are exempt from Section 40A(3) disallowance if the payment is routed through the payee's bank account and is traceable, ensuring the payee receives the funds.

27

judgments rely on this decision, according to BharatTax’s citation analysis of 366,459 Indian tax judgments — from 2016 to 2024.

Also referred to as

Sri Renukeswara Rice Mills v ITO · section 40A(3) · section 6DD · cash payment farmers · payee bank account · traceable transaction · ITAT Bangalore · disallowance · rule 6DD exemption · genuine business expenditure

Sections most often in play

Section 142(1)Section 143(2)Section 40A(3)Section 6DD

Issues it is cited on

section 40a(3)section 40asection 40prescribedpersonbusinesscompanydocument

Judgments citing Sri Renukeswara Rice Mills v. ITO

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

In the result, the appeal of the assessee is allowed

ITA 307/KOL/2014[2010-2011]Status: DisposedITAT Kolkata10 Aug 2016AY 2010-2011

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

For Appellant: Shri Ravi Tulsiyan, FCAFor Respondent: Shri Divakar Chakraborty, JCIT, Sr. DR
Section 143(3)Section 40A(3)

…the instance of the Government and accordingly would fall under the exception provided in Rule 6DD(a)(ii) of the Rules. He placed reliance on the decision of Co-ordinate Bench of Bangalore Tribunal in the case of Sri Renukeswara Rice Mills vs ITO reported in 93 ITD 263 (Bang Trib.) wherein it was held that the cash payment in the accounts of the payee in a Bank is sufficient to get exemption in terms of Rule 6DD. It was submitted that the decision of Bangalore Tribunal is more reasonable and pragmatic and therefore the same is to be followed in preference to the Hon’ble Kerala High Court decision in the case of…

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

ITA 166/KOL/2014[2009-2010]Status: DisposedITAT Kolkata10 Aug 2016AY 2009-2010

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

For Appellant: Shri U. Dasgupta, AdvocateFor Respondent: Shri Sallong Yaden, Addl. CIT
Section 143(3)Section 40A(3)

…the instance of the Government and accordingly would fall under the exception provided in Rule 6DD(a)(ii) of the Rules. He placed reliance on the decision of Co-ordinate Bench of Bangalore Tribunal in the case of Sri Renukeswara Rice Mills vs ITO reported in 93 ITD 263 (Bang Trib.) wherein it was held that the cash payment in the accounts of the payee in a Bank is sufficient to get exemption in terms of Rule 6DD. It was submitted that the decision of Bangalore Tribunal is more reasonable and pragmatic and therefore the same is to be followed in preference to the Hon’ble Kerala High Court decision in the case of…

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

ITA 165/KOL/2014[2008-2009]Status: DisposedITAT Kolkata10 Aug 2016AY 2008-2009

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

For Appellant: Shri U. Dasgupta, AdvocateFor Respondent: Shri Sallong Yaden, Addl. CIT
Section 143(3)Section 40A(3)

…the instance of the Government and accordingly would fall under the exception provided in Rule 6DD(a)(ii) of the Rules. He placed reliance on the decision of Co-ordinate Bench of Bangalore Tribunal in the case of Sri Renukeswara Rice Mills vs ITO reported in 93 ITD 263 (Bang Trib.) wherein it was held that the cash payment in the accounts of the payee in a Bank is sufficient to get exemption in terms of Rule 6DD. It was submitted that the decision of Bangalore Tribunal is more reasonable and pragmatic and therefore the same is to be followed in preference to the Hon’ble Kerala High Court decision in the case of…

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

In the result, appeal of the assessee is dismissed

ITA 1910/KOL/2012[2008-2009]Status: DisposedITAT Kolkata10 Aug 2016AY 2008-2009

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

For Appellant: Shri S. K. Sarkar, A.RFor Respondent: Shri Sallong Yaden, Additional C.I.T
Section 143(2)Section 40A(3)

…against the assessee. It was also held that the Income Tax Officer should take a practical approach to the problem and strike a balance between the directions of law. In this connection a decision given by Tribunal in Sri Renukeswara Rice Mills v. ITO [2005] 93 ITD 263 (Bang.) can be referred. The relevant extracts for the purpose are reproduced below: In this present case the appellant maintains a running account with distributor and makes payment by Cheque/in cash or takes delivery of goods even when payment is not readily made and the distributor make the delivery on credit." 5. The CIT-A considered the sub…

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

In the result, all the appeals of assessee are allowed

ITA 148/KOL/2015[2007-2008]Status: DisposedITAT Kolkata05 Aug 2016AY 2007-2008

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

For Appellant: S/Shri S. K. Tulsiyan & R. N. Ram, ARsFor Respondent: Shri Rajat Kumar Kureel, JCIT
Section 143(3)Section 40A(3)

…held that all cash payments to the State Bank of India are eligible for exemption as provided under Rule 6DD(a)(ii). 7. He placed reliance on the decision of Co-ordinate Bench of Bangalore Tribunal in the case of Sri Renukeswara Rice Mills vs ITO reported in 93 ITD 263 (Bang Trib.) wherein it was held that the cash payment in the accounts of the payee in a Bank is sufficient to get exemption in terms of Rule 6DD. It is submitted that the decision of the Hon’ble Bangalore bench in the above mentioned case is more reasonable and pragmatic and therefore the same is to be followed in preference to the Hon’ble Kerala…

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

ITA 186/KOL/2014[2010-11]Status: DisposedITAT Kolkata05 Aug 2016AY 2010-11

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

For Appellant: S/Shri S. K. Tulsiyan & R. N. Ram, ARsFor Respondent: Shri Rajat Kumar Kureel, JCIT
Section 143(3)Section 40A(3)

…held that all cash payments to the State Bank of India are eligible for exemption as provided under Rule 6DD(a)(ii). 7. He placed reliance on the decision of Co-ordinate Bench of Bangalore Tribunal in the case of Sri Renukeswara Rice Mills vs ITO reported in 93 ITD 263 (Bang Trib.) wherein it was held that the cash payment in the accounts of the payee in a Bank is sufficient to get exemption in terms of Rule 6DD. It is submitted that the decision of the Hon’ble Bangalore bench in the above mentioned case is more reasonable and pragmatic and therefore the same is to be followed in preference to the Hon’ble Kerala…

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

ITA 185/KOL/2014[2008-09]Status: DisposedITAT Kolkata05 Aug 2016AY 2008-09

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

For Appellant: S/Shri S. K. Tulsiyan & R. N. Ram, ARsFor Respondent: Shri Rajat Kumar Kureel, JCIT
Section 143(3)Section 40A(3)

…held that all cash payments to the State Bank of India are eligible for exemption as provided under Rule 6DD(a)(ii). 7. He placed reliance on the decision of Co-ordinate Bench of Bangalore Tribunal in the case of Sri Renukeswara Rice Mills vs ITO reported in 93 ITD 263 (Bang Trib.) wherein it was held that the cash payment in the accounts of the payee in a Bank is sufficient to get exemption in terms of Rule 6DD. It is submitted that the decision of the Hon’ble Bangalore bench in the above mentioned case is more reasonable and pragmatic and therefore the same is to be followed in preference to the Hon’ble Kerala…