2014 (9) TMI 1050

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....pur dated 01-12-2011 for the assessment year 2008-09 wherein the Revenue has raised following grounds:- ''On the facts and in the circumstances of the case and in law the ld. CIT(A) has erred in:- (i) deleting addition of Rs. 2,41,14,570/-made by AO by way of disallowance u/s 40A(3) on account of cash payment to the agents without appreciating that there was no requirement by agent to pay the pa....

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....e heard rival submissions and considered them carefully. After considering the submissions and perusing material on record, we find that assessee has appointed various representative/agents for various locations who purchase diesel/petrol from nearest Petrol Pump and arrange for supply to various locations of Diesel Generating Sets. There are 110 locations. The petrol pump asked for payment in cas....

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....ke payment in cash for goods or services on behalf of such person, the assessee's case falls under the exception clause of rule 6DD(k) as assessee made the payment to the bank account of the agents who was required to make payment in cash for buying the petrol or diesel at different locations. Therefore, we see no infirmity in the finding of Ld.CIT(A) who following the provisions of exception clau....

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....of the case of the assessee between A.Y. 2007-08 and the assessment year in question i.e. 2008-09. The Ld.CIT(A) has allowed the relief to the assessee following the ITAT judgement (supra). Thus there is no infirmity in the order of ld. CIT(A). Ld.D.R. did not dispute to the facts as there is no change in the facts and circumstances of both these years. 2.5 We have heard the rival contentions and....