2025 (2) TMI 823

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..... s of section 40 A(3) cannot be read in isolation but should be read with the provisions of rule 6DD of the I.T. Rules. Provisions of rule 6DD enumerates certain exceptions for invoking provisions of section 40A(3). Clause (b) of rule 6DD provides that where the payment is made to the government no disallowance u/s. 40A(3) is to be made. In the present case, the payment is made to state governmen .....

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..... 2. Brief facts of the case are that the appellant is a partnership firm engaged in the business of manufacturing and trading of food items. The return of income for AY 2015-16 was filed on 22.09.2016 declaring a total income of Rs. 1,93,910/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-3, Kannur (hereinafter called "the AO") vide order dated 19 .....

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..... les. Therefore, no addition is called for. 6. On the other hand, the learned Sr. DR opposed the contentions of the appellant. 7. The solitary issue that arises for our consideration is whether the CIT(A) was justified in confirming the is u/s. 40A(3) of the Act being payment made to KSEB in cash towards electricity charges. The provisions of section 40A(3) is not absolute. Provisions of section .....

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