2008 (8) TMI 356

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..... basis of these facts it is not justified on the part of the Assessing Officer to disallow 20 per cent. of the payments under section 40A(3) in the process of assessment. – disallowance is not justified - 186 of 2008 and 867 of 2008 - - - Dated:- 4-8-2008 - PINAKI CHANDRA CHOSE and SANKAR PRASAD MITRA JJ. JUDGMENT 1. Perused the petition for condonation of delay. We are satisfied with .....

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..... consideration to the arguments advanced from both sides and also perused carefully the relevant papers. We find that the Assessing Officer in his order at paragraph 3.8 states that "The assessee has also admitted that they collect raw hides/skins from villages from the original skin peelers, process these hides and skins to some extent and only after that, those skins/hides are sold to tannery". T .....

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..... accepted by the Central Board of Direct Taxes by issuing press note dated May 2, 1969, and the view that products otherwise covered under rule 6DD, when subjected to some processing should also qualify for exemption has been admitted. In this view of the matter and after considering the issue in great detail, we are of our considered view that the addition of Rs. 2.50 lakhs under section 40A(3) is .....

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..... is no necessity to derive other meanings of the rule by looking into the dictionary meaning or otherwise. This contention of the Commissioner of Income-tax (Appeals) is not acceptable. The contention of the assessee that he purchased goods from suppliers who are producers of hides and skins, has not been refuted either by the Assessing Officer or by the Commissioner of Income-tax (Appeals). The se .....

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..... re is any reason to admit this appeal since in our considered opinion, no substantial question of law is involved in this matter. Hence, the appeal being I. T. A. No. 186 is dismissed. 4. All parties concerned are to act on a xerox signed copy of this order on the usual undertakings. 5. Urgent xerox certified copy of this order, if applied for, be supplied to the parties subject to complia .....

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