TaxTMI 
TaxTMI 
2022 (1) TMI 1051
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....Tribunal, 'C' Bench, Kolkata (the Tribunal) in ITA No.2620/Kol/2013 for the assessment year 2010/11. The Revenue has raised the following substantial questions of law for consideration: (a) Whether on the facts and in the circumstances of the case, the Learned Income Tax Appellate Tribunal, 'C' Bench was correct in holding that the assessee was entitled to deduction in respect of raw hide purchases made in cash exceeding Rs. 20,000/- u/s 40A(3) of the Income Tax Act, 1961 ? (b) Whether on the facts and in the circumstances of the case, the Learned Income Tax Appellate Tribunal, 'C' Bench was correct in holding that the purchases were made from the persons covered by the provisions of Rule 6DD(e) of the Income Tax Rules, without ....
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....the records which were placed before the assessing officer were once again placed before the [CIT(A)] and submissions were made on the facts of the case. The [CIT(A)] further noted the factual position and accepted the case of the assessee. After noting the documents produced by the assessee to prove the genuineness of the transaction. Furthermore, the [CIT(A)] observed that merely because the sellers and the traders are merchants of hides and skins, they cannot be termed to be producers. Thus, taking note of the facts, the assessee's appeal was allowed by order dated 13.08.2013. Aggrieved by the same, the Revenue filed appeal before the Tribunal. The Tribunal re-examined the factual position and noted that the assessing officer has not bro....
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....ors are not excluded. Genuine and bona fide transactions are not taken out of the sweep of the section. It is open to the assessee to furnish to the satisfaction of the Assessing Officer the circumstances under which the payment in the manner prescribed in section 40A(3) was not practicable or would have caused genuine difficulty to the payee. It is also open to the assessee to identify the person who has received the cash payment. Rule 6DD provides that an assessee can be exempted from the requirement of payment by a crossed cheque or crossed bank draft in the circumstances specified under the rule. It will be clear from the provisions of section 40A (3) and rule 6DD that they are intended to regulate business transactions and to prevent t....