M/s Srikishan Omprakash, Malda V. I.T.O Wd - 3,Malda, Malda

ITA 173/KOL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 83103 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 7 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2014
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Next Hearing Date: 01-08-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 23-01-2013
• Court: TRIBUNAL
• Department Lawyers: DAVID Z CHAWNGTHU ADD L
• Assessee Lawyers: V K AGARWAL
• Section: 40A(3); 143(3)

Judgement Text

, SMC(B) , IN THE INCOME TAX APPELLATE TRIBUNAL SMC(B) BENCH : KOLKATA () BEFORE , ) [BEFORE SHRI MAHAVIR SINGH, JM] / I.T.A NO.173/KOL/2013 !'/ ASSESSMENT YEAR: 2008-09 M/S. SRIKISHAN OMPRAKASH VS. INCOME-TAX OFFICER, WD-3, MALDA (PAN: AAVFS3705R) ($% /APPELLANT ) (&'$%/ RESPONDENT ) DATE OF HEARING: 21.08.2014 DATE OF PRONOUNCEMENT: 02.09.2014 FOR THE APPELLANT: SHRI V. K. AGARWAL, FCA FOR THE RESPONDENT: SHRI DAVID Z. CHAWNGTHU, ADD L. CIT, SR. DR () / ORDER THIS APPEAL BY ASSESSEE IS ARISING OUT OF ORDER OF CIT(A), JALPAIGURI IN APPEAL NO. 39/MLD/CIT(A)/JAL/10-11 DATED 17.10.2012. ASSESSME NT WAS FRAMED BY ITO, WARD-3, MALDA U/S. 143(3) OF THE INCOME-TAX ACT, 1961 (HERE INAFTER REFERRED TO AS THE ACT) FOR ASSESSMENT YEARS 2008-09 VIDE HIS ORDER DATED 27.12 .2010. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF CIT(A) CONFIRMING THE DISALLOWANCE MADE BY AO U/S. 40A(3) OF THE ACT FOR CASH PAYMENT MADE FOR PURCHASE OF AGRICULTURE PRODUCE FROM SMALL FARMERS. 3. I HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE ASSESSEE DERIVES INCOME FROM TRADING IN SILK YARN AND DURING THE YEAR IT HAS MADE PURCHASES BY MAKING CASH PAYMENT OF RS.1,01,316/- F ROM FIVE PERSONS AND PAYMENT EXCEEDING RS.20,000/- IN EACH CASE. ACCORDINGLY, HE MADE DIS ALLOWANCE FOR AN AMOUNT OF RS.1,01,316/- BY INVOKING THE PROVISIONS OF SECTION 40A(3) OF THE ACT. THE CIT(A) ALSO CONFIRMED THE ACTION OF AO. AGGRIEVED, ASSESSEE PREFERRED APPEAL BEFORE ITAT. 4. I FIND FROM THE FACTS OF THE CASE THAT ALL THE S UPPLIERS ARE LIVING IN THE VILLAGES WHERE THERE IS NO BRANCH OF ANY BANK. THE ASSESSEE IS PU RCHASING SILK FROM VILLAGERS I.E. PURELY AGRICULTURAL PRODUCT, WHICH IS RECOGNIZED BY AGRICU LTURE MARKET COMMITTEE OF WEST BENGAL VIDE GAZETTE NOTIFICATION DATED 21.02.2002. ADMITT EDLY, THE SUPPLIERS ARE ALL VILLAGERS AND AGRICULTURISTS. I FIND THAT THE ASSESSEES CASE FA LLS UNDER SUB-RULE (G) OF RULE 6DD OF I. T. RULES, 1962. ONCE THE ASSESSEES CASE FALLS IN EXCEPTION AS PROVIDED UNDER RULE 6DD OF THE I. T. 2 ITA NO.173/K/2013 M/S. SRIKISHAN OMPRAKASH AY 08-09 RULES, 1962, I FIND NO REASON TO SUSTAIN THE ADDITI ON. ACCORDINGLY, I DELETE THE DISALLOWANCE AND APPEAL OF ASSESSEE IS ALLOWED. 5. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED. 6. ORDER PRONOUNCED IN OPEN COURT ON 02.09.2006. SD/- , (MAHAVIR SINGH) JUDICIAL MEMBER DATED : 2ND SEPTEMBER, 2014 *+ ,- . JD.(SR.P.S.) () / &0 1(0!2- COPY OF THE ORDER FORWARDED TO: 1 . $% / APPELLANT M/S. SRIKISHAN OMPRAKASH, S. P. ROAD, B ALUCHAR, MALDA, DIST. MALDA PIN 732101. 2 &'$% / RESPONDENT ITO, WARD-3, MALDA. 3 . ) ( )/ THE CIT(A), JALPAIGURI 4. 5. ) / CIT JALPAIGURI 089 & / DR, KOLKATA BENCHES, KOLKATA '0 &/ TRUE COPY, ():/ BY ORDER, - /ASSTT. REGISTRAR .