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TMI Blog2018 (5) TMI 899X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and as per requirement specified by BSNL. Under these circumstances, even if the assessee does not fall in any of the clause of Rule 6DD, invoking the provisions of section 40A(3) can be dispensed with. In view of the above discussion, we set aside the order of the ld. CIT(A) and delete the addition made under section 40A(3) of the Act. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... t attract the provisions of section 40A(3) of the Act. The payments were made in cash as per the demand of BSNL. The payments are covered by exceptional circumstances provided under rule 6DD(b) of the Rules. 5. The crux of the arguments of the assessee before the ld. CIT(A) was that the payments were made in cash as required by BSNL and that BSNL is a Government company and the genuineness of payments are not doubted. The payments were made in cash in view of the business expediency. The ld. CIT(A) after considering the submissions of the assessee and the order of the Assessing Officer, upheld the addition made by the Assessing Officer under section 40A(3) of the Act as per the reasons appearing in his order. 6. Being further aggrieved, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion that BSNL is a State as per Article 12 of the Constitution of India. In that order, it was observed that the expression "other authorities" used in Article 12 is neither defined in the Constitution of India nor in any other statute. The Courts have interpreted in various judgments the expression "other authorities" and after applying the cumulative effect of all the relevant factors, if the body is found to be an instrumentality of the agency of the Government, it would be an authority included in term "State" under Article 12 of the Constitution of India. 8. The ld. A.R. of the assessee also placed reliance upon the order of the Chandigarh Bench of the Tribunal in the case of DCIT, Circle IV vs. Dhuri Wine in ITA No.1155/Chd/2013, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. A.R. of the assessee submitted that the case of the assessee is squarely covered by the aforesaid orders of the Tribunal and, therefore, the addition made by the Assessing Officer and confirmed by the ld. CIT(A) under section 40A(3) of the Act may be deleted. 9. The ld. D.R., on the other hand, relied upon the orders of the authorities below. 10. We have perused the case records, heard the rival contentions, analysed the facts and circumstances and considered the judicial decisions placed before us. It is an undisputed fact that a Demand Note was issued by BSNL requiring the assessee to make payments in cash and genuinity of the payments to BSNL was never doubted by the Department. With regard to the observation of the ld. CIT(A) th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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