Sricharan Maity, Purba Medinipur V. I.T.O., Ward-27(4), Haldia

ITA 313/KOL/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6158 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-06-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 20-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANKAR HALDER JCITSRDR
• Assessee Lawyers: SANJIB KR DAS SHARMA
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.313/KOL/2019 ASSESSMENT YEAR:2014-15 SRICHARAN MAITY VILL. KASBA EGRA, P.O.& P.S. EGRA, DIST. PURBA MEDINIPUR-721429 [ PAN NO.AGJPM 6569 M ] / V/S . INCOME TAX OFFICER WARD-27(4), HALDIA, BASUDEVPUR,KHANJANCHAK, HALDIA, PURBA MEDINIPUR /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI SANJIB KR. DAS SHARMA, ADVOCATE /BY RESPONDENT SHRI SANKAR HALDER, JCIT-SR-DR /DATE OF HEARING 27-06-2019 /DATE OF PRONOUNCEMENT 07-08-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2014-15 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-7, KOLKATAS O RDER DATED 04.12.2018 PASSED IN CASE NO.143/CIT(A)-7/WARD-27(4)/KOL/16-17, INVOLVIN G PROCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSE. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE CANVAS S IN THE INSTANT APPEAL SEEKS TO REVERSE BOTH THE LOWER AUTHORITIES ACTION INVOKING DISALLOWANCE OF HIS CASH PAYMENTS AMOUNTING TO .31,22,901/- U/S 40A(3) OF THE ACT. 3. THIS ASSESSEE IS ADMITTEDLY ENGAGED IN MEDICINES TRADING BUSINESS AND ALSO THAT HE HAD MADE THE IMPUGNED CASH PAYMENTS TO VARIOUS M EDICINES SUPPLIERS AGENTS BOOKING ORDERS IN THE FIELD. THIS CLINCHING ASPECT OF THE ISSUE HAVE NOWHERE BEEN DISPUTED IN EITHER OF THE LOWER PROCEEDINGS. IT IS IN THIS VIEW OF FACTS THAT I QUOTE ITA NO.313/KOL/2019 A.Y. 2014-15 SRICHARAN MAITY V. ITO WD-27(4), HALDIA PAGE 2 HONBLE JURISDICTIONAL HIGH COURTS DECISION IN ITA NO.202/2008 CIT VS. CRESCENT EXPORT SYNDICATE IN ITA NO. 202 OF 2008 DATED 30.07.2008 THAT OVERW HELMING GENERAL PAYMENTS ARE NOWHERE SOUGHT TO BE DISALLOWE D UNDER THE RIGOR OF THE IMPUGNED PROVISION AS UNDER:- IT ALSO APPEARS THAT THE PURCHASES HAVE BEEN HELD TO BE GENUINE BY THE LEARNED CIT(APPEAL) BUT THE LEARNED CIT(APPEAL) HAS INVOKED SECTION 40A(3) FOR PAYMENT EXCEEDING RS.20,000/- SINCE IT IS NOT MADE BY CROSS ED CHEQUE OR BANK DRAFT BUT BY HEARER CHEQUES AND HAS COMPUTED THE PAYMENTS FALLIN G UNDER PROVISIONS TO SECTION 40A(3) FOR RS.78,45,580/- AND DISALLOWED @ 20% THER EON RS.15,69,116/-. IT IS ALSO MADE CLEAR THAT WITHOUT THE PAYMENT BEING MADE BY B EARER CHEQUE THESE GOODS COULD NOT HAVE BEEN PROCURED AND IT WOULD HAVE HAMPERED T HE SUPPLY OF GOODS WITHIN THE STIPULATED TIME. THEREFORE, THE GENUINENESS OF THE PURCHASE HAS BEEN ACCEPTED BY THE LD. CIT(APPEAL) WHICH HAS ALSO NOT BEEN DISPUTED BY THE DEPARTMENT AS IT APPEARS FROM THE ORDER SO PASSED BY THE LEARNED TRIBUNAL. I T FURTHER APPEARS FROM THE ASSESSMENT ORDER THAT NEITHER THE ASSESSING OFFICER NOR THE CIT(APPEAL) HAS DISBELIEVED THE GENUINENESS OF THE TRANSACTION. THE RE WAS NO DISPUTE THAT THE PURCHASES WERE GENUINE. 4. I ADOPT THE ABOVE DETAILED REASONING MUTATIS MUT ANDIS HOLD THAT THE ASSESSEES BUSINESS EXIGENCY TO ENSURE MEDICINES SUPPLIES AT T HE EARLIEST FORMING HIS SOLE REASON TO MAKE THE IMPUGNED PAYMENT BY CASH. I THEREFORE A CCEPT THE SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT LIS . 5. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 07/08/2019 SD/- (S.S. GODARA) JU DICIAL MEMBER KOLKATA, *DKP/SR.PS - 07/08/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-SRICHARAN MAITY, VILL. KASBA EGRA, P.O.& P.S. EGRA, DIST. PURBA MEDINIPUR, PIN-721429 2. /RESPONDENT-ITO WD-2(4), BASUDEVPUR, KHANJANCHAK, HAL DIA PURBA MEDINIPUR 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ ',