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TMI Blog2018 (10) TMI 1732X X X X Extracts X X X X X X X X Extracts X X X X ..... re, disallowance u/s. 40A(3) cannot be sustained. This order of Tribunal has been relied upon by the CIT(A) to give relief to the assessee. From the grounds raised by the department before us or the statement of fact followed by the ITO, Ward 1(2), Jalpaiguri there is no challenge as to why the CIT(A) erred in relying on the order of Tribunal in Ashok Kumar Mondal, Burdwan (supra) to give relief to the assessee. We note that the department has not made any attempt to challenge the decision of CIT(A) by distinguishing the ratio laid by the Tribunal in Ashok Kumar Mondal, Burdwan (supra), which could have allowed us scope to interfere with the order of ld.CIT(A). - Decided against revenue - I.T.A. No. 1322/Kol/2017 Assessment Year: 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... irit Bottling (country spirit) Rs. 1,51,800/- Total: ₹ 1,13,84,651/- According to AO, the parties from whom the assessee has purchased the country spirit and foreign liquor on various dates, the assessee has made payment above ₹ 20,000/- in cash violating the provisions of sec. 40A(3) of the Act. Hence, he issued show cause letter dated 03.11.2016 to clarify the same and a letter dated 15.11.2016 fixing the case for hearing. In reply, the assessee filed a written submission before the AO. According to AO, the submissions made by the assessee are not tenable as the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e payments were made to the licencees of Excise department of Govt. of West Bengal. And it was brought to the notice of authorities below and before us that only when the assessee furnish the deposit slip of payment to the bottlers/dealers of country liquor/foreign liquor, then only the assessee would be permitted to lift the country liquor from the bottling plant. Since the purchase price of liquor was claimed by assessee as an expense to arrive at its income from business, the AO disallowed it by finding with the assessee not making payment through banking channel by mode of NEFT/RTGS. So he invoked sec. 40(3) of the Act to disallow ₹ 1.13,84,651/-. On appeal, the ld. CIT(A) taking note of this Tribunals decision in ITA No. 163/K ..... X X X X Extracts X X X X X X X X Extracts X X X X
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