Question ID :
40496
078994
A Company has deposited Electricity Bill to the State Electricity Board in Cash. The A.O , while doing the Assessment , has disallowed the same. Kindly provide some case laws and oblige.
Posted by
AJAY JAIN
on
Dec 05, 2019
Filed Under
DIRECT TAXES
case laws are Sumit Industries Vs. ITO (ITAT Jodhpur) ITA NO. 12/JODH/2018 and Shri Daljit Singh vs. ACIT, Kolkata, I.T.A. No.769/Kol/2018. If the genuineness of the payment is established, no disallowance under section 40A(3) can be made, even if the payment is made to Board or Nigam.
Posted by
CA. chunauti dholakia on
Dec 10, 2019
Answer ID :
80297
Genuine Payments made to Electricity Board is not disallowable under section 40(A)(3) of the Income Tax Act. Case Laws Related:
(i) M.R.Soap - 32TTJ - 505(Del)
(ii) Padigela Rajeshwar Ginning Ind. - ITA 1137 - Hyd/2011
(iii) Trivedi Corporation - ITA 2844 - Ahd/2006
Posted by
KRITHIKA NARAYANAN on
Dec 17, 2019