M/s Anil oil Industries, Sitapur V. The Income Tax Officer, Sitapur

ITA 529/LKW/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 70544 (ITAT-LUCKNOW)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-08-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 11-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH SMC : LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER I.T.A. NO. 529 /LKW/2013 ASSESSMENT YEAR:08 - 09 M/S ANIL OIL INDUSTRIES, VS. INCOME TAX OFFICER, SHAHJAHANPUR ROAD, SITAPUR. SITAPUR. PAN:AABFA7529R (APPELLANT) (RESPONDENT) APPELLANT BY : NONE RESPONDENT BY : SHRI ALOK MITRA, D.R. DATE OF HEARING : 1 2/0 8 /2013 DATE OF PRONOUNCEMENT : 22/08/2013 ORDER THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) , ON A SOLITARY GROUND THAT THE CIT(A) HAS ERRED IN CONFIRMING THE DISALLOWANCE OF ` 1,28,166/ - U/S 40A(III) OF THE I.T. ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT). THE APPEAL CAME UP FOR HEARING ON 12/08/2013 BUT NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE VALID SERVICE OF NOTICE OF HEARING. ON PERUSAL OF ORDERS OF THE LOWER A UTHORITIES, I FIND THAT THIS APPEAL CAN BE DISPOSED OF EVEN IN ABSENCE OF THE ASSESSEE. ACCORDINGLY, THE REVENUE WAS HEARD. 2. BEFORE THE LOWER AUTHORITIES, IT WAS CONTENDED BY THE ASSESSEE THAT PAYMENT EXCEEDING ` 20,000/ - WAS MADE TO PURCHASE THE DIESE L AT DIFFERENT PLACES WHERE THE BRANCH OF NATIONALIZED BANK WAS NOT AVAILABLE AND CERTAIN 2 PURCHASES WERE MADE ON SUNDAY WHEN THE BANKING FACILITIES WERE NOT AVAILABLE ON ACCOUNT OF CLOSURE OF THE BANK , THEREFORE, THE ASSESSEE HAD MADE PAYMENT IN CASH EXCEE DING ` 20,000/ - UNDER CERTAIN CIRCUMSTANCES ON ACCOUNT OF BUSINESS EXIGENCIES. THEREFORE, THE PAYMENT SHOULD BE ALLOWED IN VIEW OF THE PROVISIONS OF RULE 6DD(G) OF THE I.T. RULES. THE DETAILS OF PAYMENTS MADE BY THE ASSESSEE ARE EXTRACTED HEREUNDER ALONG WITH THE REASONS FOR SUCH PAYMENTS: DATE DAY AMOUNT NAME OF PARTY HEAD OF ACCOUNT REASON FOR PAYMENT 22 - 4 - 2007 SUNDAY 20,262 M/S. MOOSA RAM BHAGWAN DAS, NAIPALAPUR, SITAPUR DIESEL EXPENSES SUNDAY BEING BANKING HOLIDAY AND THERE IS NO BRANCH OF BANK AT VILLAGE CHILLALA NO CREDIT SALE OF DIESEL IS ALLOWED AT VILLAGE LEVEL, HENCE CASH PAYMENT IS MADE AS AGAINST PURCHASE OF DIESEL FOR RUNNING OF GENERATOR SET. 6 - 6 - 2007 WEDNESDAY 33,720 M/S. HAMARA PUMP, VILLAGE & POST - KACHNAR, DISTT. - SITAPUR DIESEL EXPENSES THERE IS NO BRANCH OF NATIONALIZED BANK OF VILLAGE & POST - KACHNAR DISTT. - SITAPUR AND NO CREDIT SALE OF DIESEL IS ALLOWED AT VILLAGE LEVEL BY THE SELLER, HENCE CASH PAYMENT IS MADE AS AGAINST PURCHAS E OF DIESEL FOR RUNNING OF GENERATOR SET 9 - 6 - 2007 SATURDAY 50,580 M/S. HAMARA PUMP, VILLAGE & POST - KACHNAR, DISTT. - SITAPUR DIESEL EXPENSES THERE IS NO BRANCH OF NATIONALIZED BANK OF VILLAGE & POST - KACHNAR DISTT. - SITAPUR AND NO CREDIT SALE OF DIESEL IS ALLOWED AT VILLAGE LEVEL BY THE SELLER, HENCE CASH PAYMENT IS MADE AS AGAINST PURCHASE OF DIESEL FOR RUNNING OF GENERATOR SET 11 - 6 - 2007 MONDAY 23,604 M/S. HAMARA PUMP, KACHNAR SITAPUR DIESEL EXPENSES THERE IS NO BRANCH OF NATIONALIZED BANK AT KACHNAR AND NO CREDIT OF SALE OF DIESEL AT VILLAGE LEVEL AT KACHNAR IS ALLOWED BY THE SELLER HENCE CASH PAYMENT IS MADE AS AGAINST PURCHASE OF DIESEL FOR RUNNING OF GENERATOR SET. TOTAL 1,28,166 THOUGH THE REVENUE HAS DISPUTED THE EXIGENCIES OF PAYMENT IN CASH BUT KEEPING IN VIEW THE NATURE OF ACTIVITIES IN WHICH THE ASSESSEE IS INVOLVED AND THE NATURE OF PURCHASES MADE BY THE ASSESSEE FOR WHICH THE PAYMENTS WERE MADE IN CASH EXCEEDING ` 20,000/ - , I AM OF THE VIEW THAT THE ASSESSEE IS ENTITLED TO HAVE A PROTECTION OF PROVISIONS OF SUB RULE (G) OF 3 RULE 6DD OF THE INCOME TAX RULES AS THE PAYMENTS WERE MADE FOR PURCHASE OF DIESEL AT VILLAGES AND TOWNS AND SOMETIMES ON THE DAY WHEN THE BANK WAS CLOSED A ND ALSO IN THE LIGHT OF THE FACT THAT IN CERTAIN PLACES THE BANKING FACILITIES MAY NOT BE AVAILABLE. I, THEREFORE, FIND NO MERIT IN THE DISALLOWANCE. ACCORDINGLY, I SET ASIDE THE ORDER OF CIT(A) AND DELETE THE IMPUGNED ADDITION. 3. IN THE RESULT, THE AP PEAL OF THE ASSESSEE IS ALLOWED. (ORDER PRONOUNCED IN THE OPEN COURT ON 22/08/2013 ) SD/. (SUNIL KUMAR YADAV) JUDICIAL MEMBER DATED: 22/08/2013 *CL SINGH COPY FORWARDED TO THE: 1. APPELLANT. 2. RESPONDENT. 3. CIT (A) 4. CIT 5. DR. ASSISTANT REGISTRAR