Shri. C. Ashok Kumar, Bangalore V. ITO, Bangalore

ITA 112/BANG/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 9465 (ITAT-BANGALORE)
• Duration Of Justice: 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-07-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 01-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDER SOLANKI
• Assessee Lawyers: R E BALASUBRAMANYAM

Judgement Text

IN THE INCOME TAX APPELLATE TRI BUNAL BANGALORE BENCH SMC, BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNANT MEMBER ITA NO.112 (BANG) 2016 (ASSESSMENT YEAR : 2009 10 ) SHRI C. ASHOK KUMAR, NO. 45, 8 TH CROSS, 11 TH MAIN, MALLESWARAM, BANGALORE -560 003 TAN NO. AKYPK9979J APPELLANT VS THE INCOME TAX OFFICER, WARD 9 (4), BANGALORE RESPONDENT ASSESSEE BY : SHRI R. E. BALASUBRAMANYAM , C.A. REVENUE BY : SHRI INDER SOLANKI, JCIT DATE OF HEARING : 26-07-2016 DATE OF PRONOUNCEMENT : 12-08-2016 O R D E R PER A. K. GARODIA, A. M.: THIS APPEAL IS FILED BY THE ASSESSEE FOR THE ASSES SMENT YEARS 2009-10. 2. THE ASSESSEE HAS RAISED THREE GROUNDS BUT THE ON LY GRIEVANCE IS ABOUT DISALLOWANCE U/S 40A (3) OF RS. 5,12,900/- . 3. LEARNED AR OF THE ASSESSEE PLACED RELIANCE ON A JUDGMENT OF HONBLE CALCUTTA HIGH COURT RENDERED IN THE CASE OF GIRIDHA RILAL GOENKA VS. CIT AS REPORTED IN 179 ITR 122. HE ALSO SUBMITTED THAT THE PAYMENTS IN QUESTION ARE ON ACCOUNT OF LICENCE FEES PAID TO GOVERNMENT O F KARNATAKA AS STATE EXCISE OF RS. 446,000/- AND RS. 66900/- AS PER TRAN SLATED COPY OF CHALLANS AVAILABLE ON PAGES 9 AND 11 OF THE PAPER BOOK. HE A LSO SUBMITTED THAT THESE PAYMENTS ARE MADE AT STATE BANK OF MYSORE. THEREAFT ER, HE DRAWN OUR ATTENTION TO RULE 6DD (A) (II) AND SUBMITTED THAT P AYMENT AT STATE BANK OF MYSORE IS COVERED BY THIS SUB RULE AND THEREFORE, D ISALLOWANCE IS NOT JUSTIFIED. ITA NOS.112 (BANG)2016 2 LEARNED DR OF THE REVENUE SUPPORTED THE ORDERS OF T HE LOWER AUTHORITIES. 4. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. FIRST O F ALL, I TAKE NOTE OF RULE 6DD (A) (II) OF INCOME TAX RULES, 1962. AS PER THIS , NO DISALLOWANCE IS TO BE MADE U/S 40A (3) IF THE PAYMENT IS MADE TO SBI OR A NY SUBSIDIARY BANK. STATE BANK OF MYSORE IS A SUBSIDIARY OF SBI AND THI S IS ALSO NOT IN DISPUTE THAT THE PAYMENT IN QUESTION WAS MADE TO STATE BANK OF MYSORE. HENCE AS PER THIS RULE, DISALLOWANCE CANNOT BE MADE U/S 40A (3). I, THEREFORE, DELETE THIS DISALLOWANCE. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE MENT IONED ON THE CAPTION PAGE. SD/ - (A.K. GARODIA) ACCOUNTANT MEMBER BANGALORE: D A T E D : 12.08.2016 AM* COPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A)-II BANGALORE 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER, AR, ITAT, BANGALORE ITA NOS.112 (BANG)2016 3 1. DATE OF DICTATION .. 2. DATE ON WHICH THE TYPE D DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P. S. .. 4 DATE ON WHICH THE ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT .. 5. DATE ON WHICH THE ORDER COMES BACK TO THE SR. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE .. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO . 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER DOES FOR XEROX & ENDORSEMENT . 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK. 11 THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER. 12 THE DAT E ON WHICH THE FILE GOES TO THE DISPATCH SECTION FO R DISPATCH OF THE TRIBUNAL ORDER 13 DATE OF DISPATCH OF ORDER