2022 (7) TMI 339

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....June, 2014 passed by the Income Tax Appellate Tribunal "Third Member" Case (A): Kolkata (in short the 'Tribunal') in ITA No.941/Kol/2011 for the assessment year 2007-08. The revenue has raised the following substantial questions of law for consideration: i) Whether on the facts and circumstances of the case the Tribunal was justified in law to uphold the views of the Administrative Member holding, inter alia, that the provision of Section 40A(3) of the said Act could not be invoked? ii) Whether on the facts and circumstances of the case the Tribunal was justified in not appreciating the views of the judicial member who rightly held that section 40A(3) is applicable in case where issue involved is 'payments made otherwis....

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....ned third member to decide the question as to whether in the facts and circumstances of the case, the provisions of Section 40A(3) could be invoked or not. The learned third member had elaborately discussed the facts and took note of the findings recorded by the learned administrative member while affirming the findings of the CIT(A). After noting the object behind introduction of Section 40A(3), it was held that when an expenditure is incurred for which payment is not made in cash or monetary terms, the provisions will have no application. The learned third member took note of the fact that the learned judicial member who opined that the word "payment" occurring in Section 40A(3) of the Act has to be given a very wide meaning. The le....