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TMI Blog2018 (6) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... r By Appellant : Shri Manoj Kataruka, Advocate By Respondent : Shri Saurabh Kumar, Addl. CIT-DR ORDER Per Waseem Ahmed, Accountant Member This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-17, Kolkata dated 02.02.2017. Assessment was framed by ITO Ward-8(4), Kolkata u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) vide his order dated 25.02.2015 for assessment year 2012-13. Assessee has raised following ground:- 1. That on the facts and in the circumstances of the fact, the action of the Ld. CIT(A) in upholding the addition of ₹ 54,32,333/- u/s 40A(3) of the Act made by the AO is erroneous and bad in law. 2. That on the fats an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee in the name of NEPL which was adjusted by way of book entry. The details of the book entry stand as under:- Sl. No Date Name of party Adjusted amount 1 20.12.11 Panasonic India Pvt. Ltd. 42,75,989.87 2 06.01.12 - do- 11,56,343 Thus, the liability as stated above shown by assessee in the name of NEPL was adjusted by way of book entry with M/s Panasonic India Pvt. Ltd. However, the AO was of the view that the adjustment by way of book entry has violated the provision of Section 40A(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to book adjustments. The case of appellant does not fall within the above exception and hence there is no need to discuss the exception any further. Further the question involved in respect in the case of the appellant has been dealt with in CIT vs. Kishan Chand Maheshwwri Dass (1980 121 ITR 232 P H) the following are relevant excerpts of the judgment:- At the instance of the revenue, the Income-tax Appellate Tribunal, Chandigarh Bench, ha referred the following two questions of law for the opinion of this court: 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the word expenditure used in section 40A(3) does not cover expenditure on purchases of goods. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the party who supplied the goods or services to the assessee. Thus, the answer to this question in the affirmative. Based on the above analysis, including the judicial precedent cited above, I uphold the action of the AO in invoking provision of section 40A(3) on the book adjustment entries of ₹ 603150/-. Accordingly, disallowance of ₹ 603150/- is confirmed. In result Ground No. 3 and 4 of the appeal are dismissed. Aggrieved by the above finding of Ld. CIT(A), the assessee is in appeal before the Tribunal. 5. At the outset, Ld. AR before submitted that co-ordinate Bench of this Tribunal in assessee s own case in ITA No.1593/Kol/2014 pertaining to AY 2011-12 vide order date 04.08.2016 involving identical facts de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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