https://www.taxtmi.com/caselaws?id=363860 Payments made for country spirit under a statutory excise framework, by deposit into the wholesale licensee's bank account, were treated as covered by the recognised exceptions to disallowance under section 40A(3) of the Income-tax Act. The Tribunal held that the prescribed banking mechanism and the wholesale licensee's statutory role brought the transaction within the payment exceptions, so the disallowance was not sustainable. By contrast, the addition based on a difference in purchases and consequential profit was sustained because the assessee offered no satisfactory explanation and did not advance arguments on that ground. The appeal therefore succeeded only on the section 40A(3) issue and otherwise failed, resulting in partial relief. en-us Fri, 13 Jul 2018 00:00:00 +0530 Thu, 19 Jul 2018 11:22:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=363860 Payments made for country spirit under a statutory excise framework, by deposit into the wholesale licensee's bank account, were treated as covered by the recognised exceptions to disallowance under section 40A(3) of the Income-tax Act. The Tribunal held that the prescribed banking mechanism and the wholesale licensee's statutory role brought the transaction within the payment exceptions, so the disallowance was not sustainable. By contrast, the addition based on a difference in purchases and consequential profit was sustained because the assessee offered no satisfactory explanation and did not advance arguments on that ground. The appeal therefore succeeded only on the section 40A(3) issue and otherwise failed, resulting in partial relief. Case-Laws Income Tax Fri, 13 Jul 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=363860