The Appellate Tribunal considered an issue related to the ...

Tribunal Rules Cash Payments in Compliance with Section 40A(3) Exemption for Milk Distributor's Verifiable Transactions.

July 3, 2024

Case Laws Income Tax AT

The Appellate Tribunal considered an issue related to the disallowance of expenditure in cash exceeding the permissible limit u/s 40A. The assessee, a milk distributor, received milk products from a main supplier and conducted sales through sub-distributors, with payments made in cash through banking channels. Despite high turnover and low margins, the Tribunal referred to relevant case precedents to establish that payments made to others could be verified, thus exempting them from section 40A(3). It was found that the payee had also acted as the assessee's agent and was required to make cash payments to the company, leading to the deletion of the disallowance. The decision favored the assessee based on the provided evidence and legal interpretations.

View Source

← Previous Next →

The Appellate Tribunal considered an issue related to the ...

Tribunal Rules Cash Payments in Compliance with Section 40A(3) Exemption for Milk Distributor's Verifiable Transactions.

July 3, 2024

Case Laws Income Tax AT

You may also like:

Benefit of exemption subject to the condition that no Cenvat Credit is availed - The appellant are eligible for exemption under Notification No. 30/2004-C.E. when they...

Addition u/s 40A(3) - cash payment in excess of prescribed limit - Genuineness or otherwise of payment is not a criteria to exclude cash payment in excess of prescribed...

Addition u/s 40A(3) - cash payments were made to truck drivers after banking hours - even this amount should not have been disallowed u/s 40A(3) read with Rule 6DD of...

Disallowance u/s 40A(3) - transactions and payments made in cash - assessee filed affidavits from sub-contractors of assessee firm and they insisted for cash payments to...

Disallowance u/s 40A(3) for making cash payments - proof of business expediency - Assessee has also explained that the milk was to be lifted daily and the payments were...

The appellant sought refund of Countervailing Duty (CVD) and Special Additional Duty (SAD) paid in cash u/s 11B of the Central Excise Act, 1944 read with Section 142(3)...

Invocation of section 40A(3) - Octroi was paid to the Ahmedabad Municipal Corporation – Cash payment - payment does not come within the provisions of section 40A(3) read...

Adjustment of excess service tax paid with subsequent service tax liability - case of Revenue is that Rule 6 (3) of Service Tax Rules, 1994 do not provide for such...

Applicability of section 40A(3) – Payment made of bottling charges - Rule 14 of the Karnataka Licenses General Condition Rules, 1967 mandates cash payment or not - Held No - HC

Invoking provisions of section 40A(3) - cash payment - As it is the requirement of these agents to make the payment in cash for goods, i.e. milk, to the cattle owners,...

Addition u/s. 40A(3) - additions made towards cash payments in excess of prescribed limit - Since, the assessee was only an agent for distributor and collected money...

Disallowance u/s.40A(3) - expenses towards air ticket and hotel expenses in cash in excess of prescribed limit u/s.40A(3) - there is merit in arguments of the assessee...

CESTAT ruled on short payment of excise duty involving related parties under Section 4(3)(b) of Central Excise Act. Company directors (siblings) held 99% shares and made...

Disallowance of freight expenditure u/s 40A(3) paid in Cash - As enhanced limit of ₹ 35,000/- is applicable for the payment to the transport operators and in other...

Scope of exemption notification - Absolute exemption or conditional exemption - In the present case, the goods were supplied under notification No. 108/1995-CE depending...

Quick Updates: