TaxTMI 
TaxTMI 
2017 (6) TMI 1079
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....dobust stating nonbusiness expenditure made by the Assessing Officer. 4) Under the facts and circumstances the learned CIT(A) erred in confirming the addition of Rs. 45,411/- on account of Non deduction of TDS on interest paid on car Loan made by the Assessing Officer. 5) Under the facts and circumstances the learned CIT(A) erred in confirming the addition of Rs. 1,17,160/- being purchase of Fuel (Diesel) in cash made by the Assessing Officer. 6) Under the facts and circumstances the learned CIT(A) erred in confirming the disallowance of Rs. 1,23,517/- out of Business Promotion expenses made by the Assessing Officer. 7) The Appellants crave leave to add, amend alter; delete the ground/s of appeal at or before the hearing of appeal. 2. We have heard the Ld. AR of the Assessee and the ld DR for Revenue. At the outset the Ld. AR of the Assessee submits that Ground No.1, 2, 4 and 6 are covered in his favour by the decision Tribunal in the Assessee's own case for Assessment Year 2009-10. The Ground No7 is general in nature and need no adjudication. The Ld. DR for the Revenue not disputed the contention of Ld. AR of the Assessee. 3. First ground ....
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.... kind to make any disallowance invoking the provisions of Section 14A of the Act. The basic precondition for making disallowance under the said section is earning of tax-free income and incurring of expenditure by the assessee. As both the preconditions are absent in the case under consideration therefore, in our opinion, the order of the FAA has to be reversed. Ground number two is decided in favour of the assessee." 7. Considering the findings of the Tribunal in Assessee's own case for assessment year 2009-10, we find that the ground of appeal raised by assessee in the present appeal is squarely covered in favour of assessee as the facts of this year are also not at variance, hence this ground of appeal is allow in favour of the assessee. 8. Ground no. 3 relates the confirming the addition of Rs. 17,500/- on account of payment to Traffic Police for Police arrangements (Bandobast). The Ld. AR of the assessee argued that the assessee is managing a Water Part at Thane and at the time of functions on New Year's celebration, annual function the Police arrangements are made to manage the public and certain payments were made to the Traffic Police. Such payments are made for the p....
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....on car loan. We have seen that similar disallowance was made against the assessee for assessment year 2009-10 and on appeal before Tribunal the identical ground was restored to the file of Assessing Officer for making verification. The Tribunal passed the following order; "Next ground is about addition of Rs. 79,722/- for non-deduction of tax on payment of interest on car loan to Mahindra and Mahindra Finance Company Ltd. Following our order for the earlier ground, we restore back the issue to the file of the Assessing Officer for making verification, that the recipient of the income had paid tax on the disputed amount. The assessee would produce relevant documents before the Assessing Officer. Ground number four is partly allowed." 11. Considering the decision of earlier year in assessee's own case, this ground of appeal is also restored to the file of Assessing Officer to decide the fresh in accordance with the direction in order dated 06/01/2017 in ITA No. 6705/M/2012.Thus, this ground of appeal is allowed of statistical purpose. 12. Ground No. 5 relates to confirming the disallowance of Rs. 1,17,060/- under section 40A(3) of the Act for purchase of diesel in cash....
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....covered under exceptions laid down as per Rule 6DD. We have seen the copy of receipt placed on record at page number 66- 69 that consist of receipts are as below: Sr.No. Date Rs. Receipt No. 1. 02/05/2009 14,404.00 63110 2. 02/05/2009 14,404.00 63174 3. 03/05/2009 14,404.00 63352 4. 03/05/2009 14,404.00 63345 5. 05/06/2009 14,404.00 83091 6. 05/06/2009 14,404.00 83103 7. 26/02/2010 15,368.00 38637 8. 26/02/2010 15,368.00 38629 Total 1,17,160.00/- We have seen that though none of the receipt is exceeded Rs. 20,000/- at one time, yet the assessee made aggregate purchases of more than Rs. 20,000/- in cash in a day, on four occasions which is prohibited by Section 40A(3) of the Act. Though, the identity and the payments made to the party are not in dispute. After the amendment in section 40A(3) w.e.f. 01.04.2009, such expenses are allowable only if covered by the exception otherwise provided under Rule 6DD of Income Tax Rule 1962. The assessee has not pleaded any of the exceptions provided under Rule 6DD. On careful reading of Rule 6DD we do not....