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TMI Blog2014 (3) TMI 259X X X X Extracts X X X X X X X X Extracts X X X X ..... ehouse, run by the government - This shows that any payment made to the warehouse, which is under the direct control of the state government, is a payment made directly to the government. Once, this is accepted then the provisions of Rule 6DD(b) of the I.T Rules 1962 which clearly spells out that the payment made to the government in legal tender under the rules framed by the Government, is exempted from the rigours of section 40A(3) of the Act - the payments made by the assessee for purchase of country spirit and country liquor is to the government as per the notification issued by the government and is in legal tender specified by the notification - the payment made by the assessee for the purchase of country liquor and country spirit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of Rs.56,66,094/- made u/s. 40A(3) holding that the assessee's case falls under exception contained in Rule 6DD(b) of the I.T Rules. II. The reduction of demand in the instant case is Rs.17,50,825/- and in the light of the Board's instruction no.3/2011 dated 09/02/2011, as the monetary limit for filing appeal before the Hon'ble ITAT, Kolkata Benches is Rs. 3 lakhs, considering the aforesaid facts an appeal before the Hon'ble ITAT Kolkata Benches is strongly suggested in this case. 5. It was the submission by the learned JCIT/Sr.DR that the issue in this appeal was against the action of the ld.CIT(A) in deleting the disallowance made by the AO of the cash purchases made by the assessee of the country liquor by applyin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decisions of the co-ordinate bench of this tribunal in the cases of Ashok Mondol (refer to supra) and M/s. Amrai Pachwai C.S Shop (refer to supra) shows that the co-ordinate bench of this tribunal held as follows:- 7. We have considered the rival submissions. At the outset a perusal of the decision in the case of Smt. Pushpalata Mondal shows that the Tribunal had decided the case by following the decision of Hon'ble Kerala High Court in the case of K. Abdu Co. referred to supra wherein the issue was in relation to Rule 6DD(a) of IT Rules. The issue in the assessee's case is in respect of the payments made under the rules framed by the Government and such payment was required to be made in legal tender. A perusal of the Go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . A perusal of the Kolkata Gazette Tuesday dated 20th Sept 2005 shows that the Government of West Bengal, Department of Excise has issued a notification, wherein the warehouse has been identified to mean the warehouse for supply of country spirit to the retail vendors, established at convenient places by the Commissioner at the expense of the State Government, or at the expense of a person to whom the exclusive privilege of supplying or selling country spirit by wholesale has been granted u/s. 22 of the Act of a licensed wholesale vendor of country spirit. Further, it has been specifically identified that the authorised representative of the wholesale licensee shall realize the necessary amount of duty, cost price and bottling charge, if th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the payment made by the assessee for the purchase of country liquor and country spirit from the territorial licensee bottling plant, IFB Agro Industries Ltd, City Centre, Durgapur is protected by the exemption in terms of Rule 6DD(b) of the I.T Rules 1962. In the circumstances, the addition as made by the AO and as confirmed by the ld.CIT(A) by invoking the provisions of section 40A(3) of the I.T Act 1961 stands deleted. 7.1 As it is noticed that the issue is squarely covered by the said decisions of the co-ordinate bench of this tribunal, wherein both of us are party, respectfully following the said decisions of the co-ordinate bench of this tribunal, the finding of the ld.CIT(A) on this issue stands confirmed. The grounds raised b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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