2008 (1) TMI 564

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... JUDGMENT The judgment of the court was delivered by 1. K. L. MANJUNATH J. - This appeal is by the Revenue challenging the concurrent findings of the Commissioner of Income-tax (Appeals) and the order passed by the Income-tax Appellate Tribunal, Bangalore Bench in I. T. A. No. l9l3IBang/1992. 2. The assessee is a firm indulging in constructional activities. For the assessment year 1989-90....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t the cash payment of Rs. 37,17,798 made by the assessee did not attract the provisions of section 40A(3) of the Act and therefore no explanation under rule 6DD of the Rules was required to be assigned by the assessee." 5. Having heard the counsel for the parties, it is noticed by us that the assessee who is a civil contractor, after obtaining a contract from the Government entrusted the work t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... on facts have held that it is not an expenditure claimed by the assessee, but it is a payment made to the sub-contractor pursuant to an agreement. There fore, we are of the opinion, that whether it is a business expenditure to attract the provision of section 40A(3) of the Act or an amount passed on to the sub-contractor is a question of fact and not question of law. If both the authorities on fa....