TaxTMI 
TaxTMI 
2013 (6) TMI 817
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....facts in deleting the disallowance made by the AO u/s. 40A(3A) of the Act amounting to R.35,13,352/-." 2. Briefly stated facts are that assessee is an authorized distributor of IDEA Cellular products viz., sim card, recharge coupon etc., for taluka Dabhoda under jurisdiction of Gandhinagar. The case of assessee was picked up for scrutiny assessment and the assessment u/s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') was framed thereby the Assessing Officer made addition of Rs. 35,13,352/-. 3. Against this, assessee preferred an appeal before Ld. CIT(A) who after considering the submissions allowed the appeal of assessee. 4. Now, Revenue is in appeal against the deletion before the Tribunal. 5. Ld. SR-DR of t....
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....isions of Section 40A(3) of the Act. Ld. CIT(A) followed the order of Hon'ble Co-ordinate Bench rendered in the case of S. Rahumathulla (supra) and Koottummal Groups (supra). We find that the facts of the present case are similar to that facts of the decision relied by the Ld. CIT(A). Ld. DR of the Revenue has not pointed out as to how these decisions are not applicable on the present case. The Hon'ble Co-ordinate Bench in the case of Koottummal Groups (supra) in ITA No. 153/COCH/2011 dated 30-06-2011 has decided this issue as under:- "Without prejudice to the foregoing, we find that the facts and circumstances of the assessee's business are identical to that in the case of S. Rahumathulla (supra), whereat the tribunal observed that it ha....
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....discussed therein. Reference thereto, being reported, and particularly to para 4.4 thereof, would be relevant in the matter. The provision of s. 40A(3) was found as not applicable in the facts and circumstances of the case' its concluding para 5 reading as: '5. In view of the decision by the Tribunal in the case of Vodafone Essar Cellular Ltd. (supra) [129 TTJ (Coch) 222], which we have sought to explain vide para 4.4 of this order, we are of the clear view that the provision of section 40A(3) would not be applicable in the facts and circumstances of the case. The earlier part of the order, which suggests otherwise, is on the premise that the 'transfer' of the cards by the service-provider to the assessee distributor represents the latter....