ACIT, CIR-2, DURGAPUR, DURGAPUR vs. S. N. CONSTRUCTION, BANKURA

In the result, the appeal of the assessee is allowed in part and the appeal of the revenue is dismissed

Bench: Hon’Ble Shri J.Sudhakar Reddy, Am & Hon’Ble Shri S.S.Godara, Jm] I.T.A No. 1117/Kol/2017 Assessment Year : 2011-12 S.N. Construction -Vs- Acit, Circle-2, Durgapur [Pan: Abafs 9119 B] (Appellant) (Respondent) I.T.A No. 1205/Kol/2017 Assessment Year : 2011-12 Acit, Circle-2, Durgapur -Vs- S.N. Construction [Pan: Abafs 9119 B] (Appellant) (Respondent)

disallowance is called for by invoking the provisions of section 40A(3) of the Act”. 9. The “ C” Bench of the Kolkata

S. N. CONSTRUCTION,BANKURA vs. ACIT, CIR-2, DURGAPUR, DURGAPUR

In the result, the appeal of the assessee is allowed in part and the appeal of the revenue is dismissed

Bench: Hon’Ble Shri J.Sudhakar Reddy, Am & Hon’Ble Shri S.S.Godara, Jm] I.T.A No. 1117/Kol/2017 Assessment Year : 2011-12 S.N. Construction -Vs- Acit, Circle-2, Durgapur [Pan: Abafs 9119 B] (Appellant) (Respondent) I.T.A No. 1205/Kol/2017 Assessment Year : 2011-12 Acit, Circle-2, Durgapur -Vs- S.N. Construction [Pan: Abafs 9119 B] (Appellant) (Respondent)

disallowance is called for by invoking the provisions of section 40A(3) of the Act”. 9. The “ C” Bench of the Kolkata

SHRI DALJIT SINGH ,KOLKATA vs. ACIT, CIRCLE - 40, KOLKATA , KOLKATA

In the result, the appeal of the assessee is allowed

Bench: Sri J. Sudhakar Reddy & Sri S.S. Godarai.T.A. No.769/Kol/2018 (Assessment Year: 2010-11)

section 40A(3) has been brought on the statute books has been clearly satisfied in the instant case. Therefore, being a 9 I.T.A. No.769/Kol/2018 Assessment Year: 2010-11 Shri Daljit Singh case of genuine business transaction, no disallowance

DCIT, CENTRAL CIRCLE - 1(4), KOLKATA , KOLKATA vs. M/S. HINDUSTAN URBAN INFRASTRUCTURE LTD.(HINDUSTAN VIDYUT PRODUCT LTD.,), NEW DELHI

Bench: Shri S.S.Godara & Shri, M. Balaganesh

disallowing assessee’s export commission payments of ₹63,56,458/- and ₹19,88,798/- on account of non-deduction of TDS thereby invoking sec. 40A(a)(i) of the Act. We treat the former assessment year 2011-12 as the “lead” assessment year containing the CIT(A)’s following detailed discussion on the issue. “5. I have considered the order

DCIT, CENTRAL CIRCLE - 1(4), KOLKATA , KOLKATA vs. M/S. HINDUSTAN URBAN INFRASTRUCTURE LTD.(HINDUSTAN VIDYUT PRODUCT LTD.,), NEW DELHI

Bench: Shri S.S.Godara & Shri, M. Balaganesh

disallowing assessee’s export commission payments of ₹63,56,458/- and ₹19,88,798/- on account of non-deduction of TDS thereby invoking sec. 40A(a)(i) of the Act. We treat the former assessment year 2011-12 as the “lead” assessment year containing the CIT(A)’s following detailed discussion on the issue. “5. I have considered the order

INCOME TAX OFFICER-WARD-12(1), KOLKATA, 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

Section 40A(3) for Rs.78,45,580/- and disallowed @ 20% thereon Rs.15,69,116/-. It is also made clear that without the payment being made by bearer cheque these goods could not have been procured and it would have hampered the supply of goods ITA No.2620/Kol/2013 A.Y. 2010-11 ITO Wd-12(1), Kol. vs. M/s Standard Leather

SPEED & MOVERS INDIA PVT. LTD.,BEHALA vs. I.T.O.,WARD-10(4), KOLKATA

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

Bench: Shri P.M. Jagtap, Vice-(Kz & Hz)

9,45,100/- 4. Car Hire Charges (Freight Rs.19,93,575/- Charges) Since the above payments were made by the assessee in cash in violation of provisions of section 40A(3) and there were no exceptional circumstances explained by the assessee for making the said payments in cash as specified in Rule 6DD, the Assessing Officer disallowed

HARIDAS SOM,HOOGHLY vs. ITO, WARD - 22(3), KOLKATA , KOLKATA

Appeal is allowed

Bench: Hon’Ble Shri J. Sudhakar Reddy., Am & Hon’Ble Shri S.S. Godara, Jm] I.T. A No. 14/Kol/2018 A.Y 2013-14 Haridas Som V/S. I.T.O. Ward 22(3), Kolkata Pan: Ajhps8867K (Appellant) (Respondent)

section 40A(3) of the Act. The Learned AO relying on all these facts sought to disallow a sum of Rs. 60,50,890/- u/s 40A(3) of the Act. 4.1. On first appeal, the Learned CITA upheld the addition of Rs. 60,50,890/- made by the Learned AO and further sought to disallow another

M/S EXCEL ENGINEERS,KOLKATA vs. J.C.I.T (OSD) CIR - 51,KOLKATA., KOLKATA

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

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

section 194C of the Act warranting disallowance u/s 40(a)(ia) of the Act. The ld AO is directed to delete this disallowance u/s 40(a)(ia) of the Act in the sum of Rs. 68,49,395/-. Accordingly, the Ground No. 1 raised by the assessee is allowed. 3. The ld AR during the course of hearing stated that

M/S MRINALINI BIRI MANUFACTURING CO.,KOLKATA vs. D.C.I.T.,CIRCLE-8(1), KOLKATA

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

Bench: Shri A. T. Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.85/Kol/2020 ("नधा"रणवष" / Assessment Year:2012-13)

disallowed in cases to which these provisions of the section apply. Sub-section (7) of section 40A was inserted by the Finance Act, 1975 with retrospective effect from 1-4-1973. It is necessary to appreciate the purpose and object intended to be achieved by this sub-section in order to arrive at the true meaning of the provision

RANJAN DEBNATH ,KOLKATA vs. PRINCIPAL CIT - 9, KOLKATA , KOLKATA

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

Bench: Shri J. Sudhakar Reddy & Shri S.S. Godara]

9) TMI 685 – ITAT, Kolkata, as the genuineness of the purchases of plastic crates from steel industries is not in doubt and as the amounts in question were directly paid into the bank account of the supplier i.e. Supreme Industries. He requested that the directions given by the Pr. CIT to be modified. 4. The ld. DR on the other

MR. NIRMAL KUMAR DAS,MIDNAPORE vs. ACIT, CIR-HALDIA, MIDNAPORE

In the result, assessee’s appeal is allowed

Bench: Shri Mahavir Singh & Shri Waseem Ahmedassessment Year :2010-11 Mr. Nirmal Kumar Das V/S. Acit, Circle-Haldia, W/H/A17, Durgachak Basudevpur, P.O. Housing Estate, P.O. Khanjan Chak, Haldia, Durgachak, Hldia, Purba Purba Medinipur, Pin – Medinipur, Pin. 721602 721602 [Pan No.Acupd 7343 M] .. अपीलाथ" /Appellant ""यथ"/Respondent

disallowance could be made under section 40A(3) – Held, yes [Para 23] [In favour of the assessee]” CIT vs Smt. Shelly Passi reported in (2013) 350 ITR 227 (P&H) In this case the court upheld the view of the tribunal in not applying section 40A(3) of the Act to the cash payments when ultimately, such amounts were deposited

DCIT, CIR-4, KOLKATA, KOLKATA vs. M/S MARUTI FREIGHT MOVERS LTD., KOLKATA

In the result, the appeal of the revenue is dismissed

Bench: Shri N. V. Vasudevan & Shri M. Balaganesh, I.T.A. No. 482/Kol/2014 Assessment Years: 2009-10

section 40A(3) of the Act was a technical disallowance for violation of specific provisions of Income Tax Act. Before us, the learned AR of the assessee has relied on the decision of the Ahmedabad Bench of the Tribunal in the case of Vijaykumar P. Desai (Individual & HUF) (supra), wherein the Tribunal has held as under: “6. We find that

DCIT, CIRCLE - 2, MINAPORE, PASCHIM MEDINIPUR vs. SHRI JUGAL KISHORE DAS, PASCHIM MEDINIPUR

In the result the appeal of the revenue is dismissed

Bench: Hon’Ble Shri J.Sudhakar Reddy, Am & Shri S.S.Viswanethra Ravi, Jm ] Assessment Year : 2010-11 D.C.I.T., Circle-2, -Versus- Shri Jugal Kishore Das Midnapore Paschim Medinipur (Pan: Adxpd 2305 B) (Appellant) (Respondent) For The Appellant: Shri David Z.Chawngthu, Addl. Cit(Sr.Dr) For The Respondent: Shri Somnath Ghosh, Advocate Date Of Hearing : 10.08.2017. Date Of Pronouncement : 13.09.2017. Order Per J.Sudhakar Reddy, Am: This Is An Appeal By The Revenue Directed Against The Order Of The Commissioner Of Income Tax-(A)-Xxxvi, Kolkata Relating To A.Y. 2010-11 On The Following Grounds : “1. That On The Facts & In The Circumstances Of The Case, The Ld.Commissioner Of Income-Tax (Appeals)-Xxxvi, Kolkata Was Not Justified In Deleting Addition Aggregating To Rs 86,55,000/-, Made U/S 40A(3) On Account Of Cash Payments Of Rs 45,80,000/- To M/S United Spirits & Rs 40,75,000/- To M/S Vtr Marketing, ; 2. That On The Facts & In The Circumstances Of The Case, The Ld.Commissioner Of Income-Tax (Appeals) - Xxxvi, Kolkata Was Not Justified In Deleting Addition Of Rs 86,55,000/- U/S 40A(3), Ignoring Assessee'S Own Statement Recorded On Oath U/S 131 On 15/03/2013, That Payments Exceeding Rs 20,000/- Were Made In Violation Of The Provisions Of Section 40A(3) Read With Rule-6Dd ; 3. That On The Facts & In The Circumstances Of The Case, The Ld. Commissioner Of Income-Tax (Appeals) -Xxxvi, Kolkata Was Not Justified In Deleting Addition Of Rs 86,55,000/- U/S 40A(3), Ignoring The Fact That The Assessee Failed To Substantiate His Claim That Payments Were Made In Violation Of The Provisions Of Section 40A(3) Read With Rule-6Dd Due To Commercial Expediency ;”

section 40A(3) - steps Into aid such assessees and concerns. In this context, the statutory mandate in rule 6DD(k), at least in the circumstances of the case, has to be construed as to mean that but for the cash payment, the assessee would have been deprived of the benefit of supplies itself. The High Court clarifies that the interpretation

SMT SHILA MONDAL,BURDWAN vs. ITO, WD-2(2), ASANSOL, ASANSOL

In the result, assessee’s appeal stands allowed

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

disallowing u/s. 40A(3) of the Income Tax Act, 1961. 9. Rule 6(2) of West Bengal Excise (Supply of Country Sprit on Payment of Duty) Rules, 2005 defines that No retail vendor of country spirit shall deposit duty direct into the local treasury for issue of country sprit to be taken by him from the warehouse concerned. Duty, cost

SRI MALAY MONDAL,BURDWAN vs. I.T.O WD - 2(2),ASANSOL, ASANSOL

In the result, the appeal of the Assessee is allowed

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

section 40A(3) of the Act and confirmed the disallowance made by the AO on this count. 8. Aggrieved by such order of the CIT-A, now the assessee is in appeal by raising the above mentioned grounds. 9

ITO, WD-2(3), DURGAPUR, DURGAPUR vs. M/S KAJORA PACHAI & C. S. SHOP, BURDWAN

In the result, all the appeals of assessee are allowed

Bench: Hon’Ble Shri N.V.Vasudevan, Jm & Shri M.Balaganesh, Am ] I.T.A No. 502/Kol/2015 Assessment Year : 2010-11 Ito, Ward-2(3), Durgapur -Vs- M/S Kajora Pachai & C.S. Shop [Pan: Aagfk 2341 E] (Appellant) (Respondent)

disallowance of the entire cash purchases results in abnormal trading profit for the assessee which it could never earn. We find a purposive construction should be resorted to while applying the provisions of the Act. Hence it would be more relevant to get into the intention of the legislature. In our opinion, the primary object of enacting section 40A

M/S RAMNAGAR PACHAI & C. S. (S) SHOP,BURDWAN vs. ITO, WD-2(3), ASANSOL, ASANSOL

In the result, all the appeals of assessee are allowed

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

disallowed, then effectively the ld AO would be taxing the entire sale proceeds as income of the assessee which would only result in an anomalous situation. He further argued that the law cannot be interpreted in such a manner as it would result in creating absurdity if section 40A(3) is invoked in a strict sense. The assessee