2016 (1) TMI 862

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....letion of disallowance u/s 40A(3) of the Act read with Rule 6DD of the Income-tax Rules and (ii) Deletion of disallowance of diesel and driver batta expenditure by the ld. CIT(A). 3. The brief facts of the case are that the assessee is an individual and is proprietrix of M/s V.J Chicken Trades, dealing in wholesale and retail trade of broiler chickens and filed return of income on 10.12.2011 disclosing total income as Rs. 6,32,240/-. The assessee is a dealer in broiler chickens and purchases are made from M/s Suguna Foods Ltd formerly known as Suguna Poultry Farm Ltd. The case was selected for scrutiny under CASS and notices u/s 143(2) and 142(1)of the Act were issued. In response to the notice, the assessee has filed documents, financial ....

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....ized clause (e)(ii)of Rule 6DD applicability for the produce of animal husbandry (including livestock meat, hides and skins) or dairy or poultry farming and in the present case, assessee has made payment in cash for the purchase of chicken birds which are out of the purview of provisions of section 40A(3) of the Act. The ld. CIT(A) after perusing the submissions and considering the facts on record has directed the Assessing Officer to delete the impugned addition and observed at para 9 of his order as :- "I am in agreement with the AR that since the case of the appellant falls squarely within Sec. 40A(3) rw Rule 6DD which has not been disputed by the Assessing Officer and where payments were made for the purchase and sale of the purchase ....

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....6DD Cases and circumstances in which a payment or aggregate of payments exceeding twenty thousand rupees may be made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft. (e) Where the payment is made for the purchase of - (i) agricultural or forest produce; or (ii) the produce of animal husbandry (including livestock, meat, hides and skins) or dairy or poultry farming;" Considering the above provisions of law, facts and circumstances of the case , the ld. CIT(A) has examined evidence available on record vis-a-vis explanations made by the assessee and there being no infirmity in the order of the ld.CIT(A), we are inclined to uphold the same by dismissing the ground raised by th....