2012 (6) TMI 914 - AT - Income Tax

Summary

Issues involved: Appeal against order of ld. CIT(A) Durgapur for Assessment Year 2008-09; Confirmation of addition u/s 40A(3) of the I.T. Act.

Confirmation of addition u/s 40A(3) of the I.T. Act:
The AO added &8377; 31,34,142/- due to cash payments exceeding &8377; 20,000/- for fuel purchase, violating Sec.40A(3) provisions. The ld. CIT(A) upheld this, noting lack of bill numbers and non-acceptance of AR's arguments. Assessee contended payments were made through drivers acting as agents, falling under Rule 6DD(k) exemption. Tribunal found no individual bill exceeding &8377; 20,000/-, supporting assessee's explanation. Relying on Rule 6DD(k), the disallowance was deemed unsustainable, directing deletion of the amount from the assessee's income. The appeal was allowed, setting aside revenue authorities' orders.