TaxTMI 
TaxTMI 
2016 (10) TMI 193
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....various re-rolling mills under the name and style of M/s Jafri Steel Traders, Aurangabad. The case of the assessee was re-opened by issuance of notice under section 148 of the Act. In the course of assessment, the assessee was confronted about the violation of section 40A(3) and section 40A(3A) of the Act to the tune of Rs. 1,95,73,979/- and Rs. 95,47,171/- respectively. It was noticed by the Assessing Officer that on verification of bank account extracts maintained with Bombay Mercantile Co-operative Bank Ltd., Main Branch, Aurangabad for the period from 01.04.2008 to 31.03.2009, it is seen that the payments were made to various parties otherwise than by account payee cheques or account payee bank draft exceeding Rs. 20,000/-. Such transac....
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....at High Court in the case of Anupam Tele Services vs. ITO, 222 taxman 318 to come to the conclusion that the Assessing Officer was not justified in making the impugned addition of Rs. 2,91,21,150/- on account of disallowance under section 40A(3) of the Act. He accordingly deleted the impugned addition made by the Assessing Officer. 4. Aggrieved by the order of the CIT(A), the Revenue is in appeal before us by raising the following Grounds of Appeal :- "1. Whether on the facts and in the circumstance of the case, the learned Commissioner of Income tax (Appeals), Aurangabad was correct in relying on the decision of ITAT Pune in the assessee own case for A.Y.2008-09 and Hon'ble Gujarat High Court in the case of Anupama Tele Services Vs ....
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....prescribed under section 40A(3) of the Act. He contended that the decision of the Tribunal for the assessment year 2008-09 and that of the Hon'ble Gujarat High Court in the case of Anupam Tele Services (supra) have been rendered in the given set of facts. In the present appeal, the assessee has not come out with any evidence or facts to prove the circumstances which compelled him to be in odds with the provisions of the Act. He therefore contended that the relief granted by the CIT(A) is totally uncalled for and contrary to the facts on record. The Ld. DR also relied upon the decision of the Hon'ble Kerala High Court in the case of MRS Roadways vs. CIT, (2014) 52 taxmann.com 99 (Kerala) relevant to assessment year 2009-10 wherein it has bee....
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....levant to assessment year 2008-09 reads as under :- "5. We have heard the rival submissions of the parties and perused the record. The Ld. Counsel placed his heavy reliance on the decision of the ITAT Bangalore Bench in the case of Sri. Renukeshwara Rice Mills v. ITO, 93 ITD 263 (Bang.). Rules 6DD has undergone amendment from the A.Y. 2009-10. So far as the decision in the case of Sri. Renukeshwara Rice Mills (Supra) is concerned, the said assessee was in the business of Rice Mills. The assessee purchased the rice from the Agriculture Produce Committee and deposited the amounts by preparing the challan & cash was deposited in Bank Account of the seller namely M/s. K. Parameshwarappa & Co. The A.O. made the disallowance for the violation o....
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....en gone to the payee only. In our opinion, the Ld CIT(A) has rightly deleted the addition and no interference is called for in his order on this issue. Accordingly, the relevant Grounds taken by the Revenue are dismissed." 8. Clearly, the Co-ordinate Bench of the Tribunal arrived at the aforesaid findings based on certain facts available on record such as confirmation of the parties, identity of the payee, payment made by bearer cheques, etc. as noted above. In the present case, we do not find any evidence referred to by the CIT(A) which is formed the foundation for granting the relief. The CIT(A) has merely reiterated the findings given by his predecessors and the ITAT in the earlier year. The question is essentially factual and requires....