Case Law Details
Kamta Prasad Mittal Vs Dy. CIT (ITAT Lucknow)
It is an undisputed fact that a Demand Note was issued by BSNL requiring the assessee to make payments in cash and genuinity of the payments to BSNL was never doubted by the With regard to the observation of the ld. CIT(A) that BSNL is not a State within the meaning of Article 12 of the Constitution of India, we find that it is in the contrary as per various judicial pronouncements. The definition of State as enshrined in Article 12 includes local or other authorities within the territory of India or under the control of the Government of India. Therefore, it is clear that BSNL is a body which is an instrumentality of the agency of the Government and taking guidance from the order of the Pune Bench of the Tribunal in the case of Income Tax Officer, Ward 2(1), Pune vs. Smt. Sapna Sanjauy Raisoni (supra), we hold that BSNL is a State under Article 12 of the Constitution of India. The facts evolves and brings out that assessee was required by BSNL to make payments in cash which is evidenced from the Demand Note issued by BSNL which is placed on record. We have also gone through findings of the Chandigarh Bench of the Tribunal in the case of DCIT, Circle IV vs. Dhuri Wine (supra). In that case also genuineness of transaction is never doubted. In the present case also the payments made to BSNL were not doubted by the Revenue and it is proved that BSNL is a State within Article 12 of the Constitution of India and moreover as per Demand Note issued by BSNL, payments were made in cash for the business expediency of the assessee and as per requirement specified by BSNL. Under these circumstances, even if the assessee does not fall in any of the clause of Rule 6DD, invoking the provisions of section 40A(3) can be dispensed with.
FULL TEXT OF THE ITAT JUDGMENT
This appeal preferred by the assessee emanates from the order of the ld. CIT(A)-I, Lucknow dated 5/12/2014.
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