R. SRINIVAS RAJU,BANGALORE vs. ACIT, BANGALORE

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

Bench: Shri A.K. Garodia & Shri Vijay Pal Rao

7 that when the payment is made in contravention of Section 40A(3) of the Act though the payment is genuine, the same cannot be allowed. The Hon'ble High Court has observed that if this view is followed that the payment is genuine then that should not be disallowed

M/S KBD SUGARS & DISTILLERIES LTD. vs. ACIT,

In the result, the appeals of the assessee for the Assessment Years 2008-

40A(2) in respect of interest free advances given to the related parties. The CIT (Appeals) deleted the said disallowance made by the Assessing Officer on the ground that the said advances made by the assessee from its own funds and not from the interest bearing fund. As regards the disallowance made by the Assessing Officer under Section

M/S LIFESTYLE INTERNATIONAL PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE

In the results appeal filed by assessee for assessment year

Bench: Shri Chandra Poojari & Smt Beena Pillai

disallowed total of Rs.57,90,897/- by invoking provisions of section 40A(2)/37 of the Act. 4.5 The Ld.AO further observed that assessee debited Rs.16,47,303/- as premium on forward contract in P &L account. Assessee was called to explain the claim. After going through the submission by assessee, the Ld.AO observed as under: “The company has involved

ASSISTANT COMMISSIONER OF INCOME-TAX, BANGALORE vs. M/S. LIFESTYLE INTERNATIONAL (P) LTD.,, BANGALORE

In the results appeal filed by assessee for assessment year

Bench: Shri Chandra Poojari & Smt Beena Pillai

disallowed total of Rs.57,90,897/- by invoking provisions of section 40A(2)/37 of the Act. 4.5 The Ld.AO further observed that assessee debited Rs.16,47,303/- as premium on forward contract in P &L account. Assessee was called to explain the claim. After going through the submission by assessee, the Ld.AO observed as under: “The company has involved

M/S.LIFESTYLE INTERNATIONAL PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, BANGALORE

In the results appeal filed by assessee for assessment year

Bench: Shri Chandra Poojari & Smt Beena Pillai

disallowed total of Rs.57,90,897/- by invoking provisions of section 40A(2)/37 of the Act. 4.5 The Ld.AO further observed that assessee debited Rs.16,47,303/- as premium on forward contract in P &L account. Assessee was called to explain the claim. After going through the submission by assessee, the Ld.AO observed as under: “The company has involved

M/S.LIFESTYLE INTERNATIONAL PRIVATE LIMITED,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME-TAX, BANGALORE

In the results appeal filed by assessee for assessment year

Bench: Shri Chandra Poojari & Smt Beena Pillai

disallowed total of Rs.57,90,897/- by invoking provisions of section 40A(2)/37 of the Act. 4.5 The Ld.AO further observed that assessee debited Rs.16,47,303/- as premium on forward contract in P &L account. Assessee was called to explain the claim. After going through the submission by assessee, the Ld.AO observed as under: “The company has involved

DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-4(1)(1), BANGALORE vs. M/S LIFESTYLE INTERNATIONAL PVT LTD , BANGALORE

In the results appeal filed by assessee for assessment year

Bench: Shri Chandra Poojari & Smt Beena Pillai

disallowed total of Rs.57,90,897/- by invoking provisions of section 40A(2)/37 of the Act. 4.5 The Ld.AO further observed that assessee debited Rs.16,47,303/- as premium on forward contract in P &L account. Assessee was called to explain the claim. After going through the submission by assessee, the Ld.AO observed as under: “The company has involved

SRI. SHAMBULAL G CHHABRA vs. ADDL.C.I.T.,

In the result, the assessee’s appeal for Assessment Year 2009-10 is allowed

Bench: Shri Jason P Boaz & Shri Pavan Kumar Gadaleassessment Year : 2009-10 Shri. Shambulal G. Chhabria, Vs. Additional Commissioner Of No.G-5, Ramanashree Chambers, Income Tax, Lady Curzon Road, Range - 8, Malleswaram, Bangalore-560 001. Bangalore. Pan : Abhps 4411 M Appellant Respondent Assessee By : Shri. V. Chandrasekhar, Advocate Revenue By : Shri. C. H. Sundar Rao, Cit Date Of Hearing : 26.03.2019 Date Of Pronouncement : 24.05.2019

disallowance under section 40A(2), is misconceived. We, th refore, hold that the Assessing Officer was not justified in invoking the provisions of section 40A(2).” 6.3.3 We also find that the ITAT – Amritsar Bench in the case of Subhash Chander and Co., (2009) 31 SOT 11 (Amritsar) at paras 5 to 7

M/S. BHARAT BEEDI WORKS PRIVATE LIMITED,MANGALURU vs. DEPUTY COMMISIONER OF INCOME TAX, CENTRAL CIRCLE - 2, MANGALURU

In the result, the appeals filed by the assessee for all the four A

Bench: SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER\nAND\nSHRI SOUNDARARAJAN K. (Judicial Member)

40A(3), disallowance has to be restricted only to\nthe payment in excess of Rs.10,000/-.\n16. As regards income declared by the directors\nof Rs.20,00,000:\n16. 1. The impugned addition of Rs.20,00,000/-\ndeclared by the directors is not justified in the absence of\nany real income, without any incriminating evidence, not\nbased on audited financial

M/S. BHARAT BEEDI WORKS PRIVATE LIMITED,MANGALURU vs. DEPUTY COMMISIONER OF INCOME TAX, CENTRAL CIRCLE - 2, MANGALURU

7 of 74\nITA Nos. 642 to 645/Bang/2024\naverage value of those investments wherein all streams of\nincome\nare\nexempted, shall alone be taken\ninto\nconsideration.\n8.9.\nThe Lower Authorities have failed to appreciate\nthat the disallowance of expenditure incurred to earn\nexempted income has to be a smaller part of exempt\nincome and should be a reasonable proportion

M/S. AMRUT DISTILLERIES PRIVATE LIMITED ,BANGALORE vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE

In the result, appeals filed by the assessee are treated as allowed for statistical purposes

Bench: Shri. Laxmi Prasad Sahuandshri. Soundararajan K

section 40(a)(ia) was warranted. Copy of the said letter is enclosed as Annexure – 2. The appellant also submitted that material on the basis of which disallowance was proposed under Sec.40A(3) / Sec.40(a)(ia) relating to payments towards transportation charges exceeding the limits specified u/s. 40A(3), was not incriminating material unearthed during the search proceedings and consequently

M/S. AMRUT DISTILLERIES PRIVATE LIMITED,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE

In the result, appeals filed by the assessee are treated as allowed for statistical purposes

Bench: Shri. Laxmi Prasad Sahuandshri. Soundararajan K

section 40(a)(ia) was warranted. Copy of the said letter is enclosed as Annexure – 2. The appellant also submitted that material on the basis of which disallowance was proposed under Sec.40A(3) / Sec.40(a)(ia) relating to payments towards transportation charges exceeding the limits specified u/s. 40A(3), was not incriminating material unearthed during the search proceedings and consequently

M/S. AMRUT DISTILLERIES PRIVATE LIMITED ,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-1(1), BANGALORE

In the result, appeals filed by the assessee are treated as allowed for statistical purposes

Bench: Shri. Laxmi Prasad Sahuandshri. Soundararajan K

section 40(a)(ia) was warranted. Copy of the said letter is enclosed as Annexure – 2. The appellant also submitted that material on the basis of which disallowance was proposed under Sec.40A(3) / Sec.40(a)(ia) relating to payments towards transportation charges exceeding the limits specified u/s. 40A(3), was not incriminating material unearthed during the search proceedings and consequently

M/S. ACE DEVELOPERS,MANGALURU vs. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, MANGALURU

In the result, the all the appeals of the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

disallowance under section 40A(3). 2. Pr. CIT Vs. GEE Square Exports (100 Taxmann.com 462) (SC) ITA Nos.74 to 76/Bang/2022 M/s. ACE Developers, Mangaluru Page 7

M/S. ACE DEVELOPERS,MANGALURU vs. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, MANGALURU

In the result, the all the appeals of the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

disallowance under section 40A(3). 2. Pr. CIT Vs. GEE Square Exports (100 Taxmann.com 462) (SC) ITA Nos.74 to 76/Bang/2022 M/s. ACE Developers, Mangaluru Page 7

M/S. ACE DEVELOPERS,MANGALURU vs. THE DEPUTY COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE-1, MANGALURU

In the result, the all the appeals of the assessee are partly allowed

Bench: Shri Chandra Poojari & Smt. Beena Pillai

disallowance under section 40A(3). 2. Pr. CIT Vs. GEE Square Exports (100 Taxmann.com 462) (SC) ITA Nos.74 to 76/Bang/2022 M/s. ACE Developers, Mangaluru Page 7

M/S. BHARAT BEEDI WORKS PRIVATE LIMITED ,MANGALURU vs. ASSISTANT COMMISIONER OF INCOME TAX, CIRCLE - 2(1) , MANGALURU

Bench: Shri Laxmi Prasad Sahu\Nand\Nshri Soundararajan K.\Nita Nos.642 To 645/Bang/2024\N Assessment Years : 2017-18 To\N2020-21\Nm/S. Bharat Beedi Works\Nprivate Limited,\Ngolden Jubilee Building,\Nbharath Bagh,\Nkadri Road,\Nmangaluru – 575 002.\Npan: Aaacb9001B\Nappellant\Nassessee By\Nrevenue By\N: Shri Chythanya .K, Sr.\Nadvocate\N: Shri E. Shridhar, Cit-Dr\Ndate Of Hearing\Ndate Of Pronouncement\Norder\Nper Bench\Nthese Are The Appeals Filed By The Assessee Challenging The Orders Of\Nthe Ld.Cit(A) -2, Panaji Dated 30/01/2024 In Respect Of The A.Ys.2017-18,\N2018-19, 2019-20 & 2020-21. The Grounds Raised By The Assessee For\Neach Of The Assessment Years Are Extracted Hereunder For The Sack Of\Nconvenience.\Npage 2 Of 74\Nita Nos.642 To 645/Bang/2024\N Assessment Year 2017-18:\N“1. The Impugned Orders Of The Lower Authorities Are Not\Njustified In Law & On The Facts & Circumstances Of The\Ncase.\N2. The Impugned Assessment Proceedings & The\Nimpugned Assessment Order Under Section 143(3) Dated\N29.11.2021 Are Bad & Non-Est Since The Notice Under\Nsection 143(2) Dated 13.08.2018 Was Issued Without\Naffixing Any Signature Either Manually Or Digitally.\N3. Without Prejudice To The Above, Impugned Assessment\Nproceedings & The Impugned Assessment Order Under\Nsection 143(3) Dated 29.11.2021 Are Bad & Non-Est\Nbeing Based On The Notice Under Section 143(2) Dated\N13.08.2018 Which Is Vague, Without Of Application Of Mind\Nand Contrary To Section 143(2) & Applicable Board\Ncirculars & Instructions.\N4. As Regards Disallowance Under Section 14A U/S Rule\N8D(2)(Ii):\N4.

section 40A(3) on the basis of\nunsigned post-dated vouchers.\nPage 25 of 74\nITA Nos.642 to 645/Bang/2024\n15. 17. Without prejudice to the Learned AO to appreciate\nthat even in case of any transaction disallowed under\nSection 40A(3), disallowance has to be restricted only to\nthe payment in excess of Rs.10,000/-.\n16. As regards income declared

M/S JUPITER CAPITAL (P) LIMITED,BANGALORE vs. ACIT, BANGALORE

In the result, ITA No. 60/Bang/2012 and 253/Bang/2014 of the assessee are partly allowed for statistical purposes and ITA

Bench: Shri Sunil Kumar Yadav & Shri Inturi Rama Raoassessee’S Appeal

40A(2) of the Act and the Tribunal has restored the matter back to the AO with the direction to examine all aspects and pass a speaking order, whereas in the impugned AY, the disallowance was made under section 37 of the Act. The revenue has taken a contrary stand while making the disallowance in the different AY whereas