DCIT, UDAIPUR V. Smt. Usha Maheshwari W/o Shri Chandresh Kumar Maheshwari, RAJSAMAND

ITA 187/JODH/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70158 (ITAT-JODHPUR)
• Duration Of Justice: 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 25-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR DEEPAK SEHGAL
• Assessee Lawyers: DEVENDRA MEHTA
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELALTE TRIBUNAL: JODHPUR BENCH : JODHPUR BEFORE SHRI HARI OM MARATHA, JUDICIAL MEMBER AND SHRI N.K. SAINI, ACCOUNTANT MEMBER. ITA NOS. 187 & 188/JODH/2013 (A.Y. 2008-09 & 2009-10) THE D.C.I.T VS SMT. USHA MAHESHWARI CENTRAL CIRCLE - 2 W/O SHRI CHANDRESH KUMAR MAHESHWARI UDAIPUR CHARBUJA ROAD, AMET, RAJSAMAND PA N NO. ADYPM 5411 E [APPELLANT] [RESPONDENT] ASSESSEE BY : SHRI DEVENDRA MEHTA DEPARTMENT BY : DR. DEEPAK SEHGAL DATE OF HEARING : 05/07/2013. DATE OF PRONOUNCEMENT : 22/08/2013. O R D E R PER BENCH, J.M. : THESE TWO APPEALS BY THE REVENUE FOR A.YS. 2008-09 AND 2009-10 ARE DIRECTED AGAINST THE COMMON ORDER OF LD. CIT(A) , CENTRAL, JAIPUR DATED 12/01/2013. 2 2. THE ONLY ISSUE INVOLVED IN THESE APPEALS IS AS T O WHETHER THE ADDITIONS OF RS. 16,04,482/- IN A.Y. 2008-09 AND RS . 15,21,517/- IN A.Y. 2009-10 MADE BY THE A.O. BY INVOKING PROVISIONS OF SECTION 40A(3) OF THE ACT IS JUSTIFIED IN VIEW OF THE FACTS THAT PAYM ENTS EXCEEDING RS. 20,000/- PAID TO AJMER VIDYUT VITRAN NIGAM LIMITED [VVNL], STATE GOVERNMENT COMPANY, IN CASH AND IN CONTRAVENTION OF PROVISIONS OF SECTION 40A(3) OF THE ACT OR NOT? 3. THE A.O. HAS NOT TREATED THE ASSESSEE-COMPANY AS A GOVERNMENT AND HAS THUS REFUSED TO EXTEND THE CONCESSION OF RU LE 6DD(B) OF THE INCOME-TAX RULES, 1962 [HEREINAFTER REFERRED TO AS 'THE ACT', FOR SHORT]. HOWEVER, THE LD. CIT(A) HAS REVERSED THE FINDING OF THE A.O. BY OBSERVING THAT THE ASSESSEE HAS MADE THESE CASH PAY MENTS TO M/S AVVNL ARE PAYMENTS TO A CORPORATE ENTITY OF THE GOV ERNMENT OF RAJASTHAN AND HAS FOUND IT TO BE COVERED UNDER THE ABOVE MENTIONED RULE. 4. AFTER HEARING BOTH THE SIDES, WE HAVE ALSO FOUND THAT THERE IS NO DISPUTE REGARDING THE IDENTITY OF THE PAYEE AND THE GENUINENESS OF THE PAYMENTS. THE HON'BLE JURISDICTIONAL HIGH COURT I N THE CASE OF CIT VS. KALYAN PRASAD [2011] 51 DTR 191 [RAJ] HAS HELD THAT WHEN PAYMENTS 3 COLLECTED BY SHRI KALYAN PRASAD GUPTA ON BEHALF OF THE STATE GOVERNMENT, RULE 6DD(B) COMES TO THE RESCUE OF THE ASSESSEE AGAINST THE PROVISIONS OF SECTION 40A(3) OF THE ACT. IN TH E GIVEN CASE ALSO, THE PAYMENTS ARE FOUND TO HAVE BEEN MADE TO THE GOVERNM ENT COMPANY AND THEREFORE, NO SUCH DISALLOWANCES CAN BE MADE U/ S 40A(3) OF THE ACT. ACCORDINGLY, WE UPHOLD THE IMPUGNED ORDER AND DISMISS THE APPEALS OF THE REVENUE. 5. IN THE RESULT, THE APPEALS OF THE REVENUE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND AUGUST, 2013. SD/- SD/- [N.K. SAINI] [HARI OM MARATHA] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 22 ND AUGUST, 2013. VL/ COPY TO : 1. THE APPELLANT 2. THE RESPONDENT BY ORDER 3. THE CIT 4. THE CIT(A) 5. THE DR ASSISTANT REGISTRAR ITAT, JODHPUR