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TMI Blog2022 (3) TMI 146X X X X Extracts X X X X X X X X Extracts X X X X ..... vided under Rule 6DD(k) of the IT Rules and Relying on the decision of the coordinate bench in the case of M/s. Pramod Kumar Singh [ 2012 (6) TMI 914 - ITAT KOLKATA] , we are of the view that the disallowance made by the AO is not sustainable and, therefore, we set aside the orders of the Ld. CIT(A) and allow the ground raised by assessee challenging the disallowance u/s 40A(3) - Decided in favour of assessee. - ITA No. 351/Kol/2021 - - - Dated:- 25-2-2022 - SHRI MANISH BORAD, ACCOUNTANT MEMBER AND SHRI SONJOY SARMA, JUDICIAL MEMBER Appellant by : Shri Somnath Ghosh, Advocate Respondent by : Shri Surendra Kumar Mishra, Addl. CIT ORDER PER SONJOY SARMA, JUDICIAL MEMBER: This is appeal filed by the assessee agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umstances in the light of Rule 6DD(k) of the Income Tax Rules, 1962 and such spurious conclusion derived from extraneous considerations not germane to the issue in dispute is totally arbitrary, unwarranted and perverse. iii. For that the Ld. Commissioner of Income Tax (Appeals)-NFAC acted unlawfully in upholding the tenuous addition amounting to ₹ 69,500/-, being the expenses incurred on account of repair charges, made by the Ld. Assistant Commissioner of Income Tax, Central Circle 2(1), Kolkata by an erroneous application of the provisions of section 40A(3) of the Income Tax Act, 1961 read with Rule 6DD(k) of the Income Tax Rules, 1962 and the adverse finding reached on such unconnected parameters not amenable to reasons is wholly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of repairing and maintenance expenses incurred ₹ 34,500/- on 12.10.2012 and altinator repairing works amounting to ₹ 35,000/- on 08.01.2013 and he stated that all the transactions were made in cash by the driver of the vehicles who are not fixed and permanent staff and acted as an agent on behalf of the assessee. Further, he submitted that the above transactions falls under the exception provided under Rule 6DD(k) of IT Rules. The said provision states as follows: 6DD. No disallowance under sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3A) of section 40A where a payment or aggregate of payments made to a person in a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... age 17 18 of Paper Book respectively for the aforesaid payment to prove the genuineness of the transaction. 8. On the other hand, the ld. DR appearing on behalf of the revenue relied on the orders of the Ld. CIT(A). 9. After hearing the rival submissions and on careful perusal of materials available on record, we find that the issue relates to disallowance of ₹ 69,500/- u/s 40A(3) of the Act incurred in cash exceeding twenty thousand rupees on account of repairs and maintenance which includes payment of ₹ 34,500/- on 12.10.2012 towards body making charges and ₹ 35,000/- towards altinator repairing works on 08.01.2013. However, going through the material facts and circumstances of the case, we find force in the cont ..... X X X X Extracts X X X X X X X X Extracts X X X X
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