2018 (10) TMI 1732

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..../- made u/s. 40A(3) of the Income-tax Act, 1961 (hereinafter referred to as the "Act").   3. Briefly stated facts are that the assessee firm is engaged in the business of  country liquor.  At the time of assessment proceedings the AO found that the assessee has purchased bulk of country spirit and foreign liquor drinks through cash payments above Rs. 20,000/- which are as under:  (i) Monalisa Bottling Industries Pvt. Ltd.  (country spirit) ... Rs.  79,57,403/- (ii) M/s. Maya Saha (Foreign liquor)  ... Rs.  24,33,467/-  (iii) M/s. Denzong Pvt. Ltd. (foreign liquor)  ... Rs.    8,41,981/-  (iv) Galaxy Country Spirit Bottling (cou....

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....total income of the assessee.  Aggrieved, assessee preferred an appeal before the Ld. CIT(A), who deleted the addition as made by the AO.  Aggrieved, revenue is before us.    4. We have heard rival submissions and gone through the facts and circumstances of the case.  We note that the AO has recorded  a finding of fact that assessee has deposited the payment against purchase through bank deposit on slip in the name of seller's account number directly. By making this finding of fact, the genuineness of the payment  being made to the bottling plants/dealers are not doubted by the AO. It was pointed out by the ld. AR that the payments were made to the licencees of Excise department of Govt. of West Bengal.....