The Commissioner Of Income Tax vs M/S.Swapana Traders on 8 December, 2009

       

  

  

 
 
  IN THE HIGH COURT OF KERALA AT ERNAKULAM

ITA.No. 492 of 2009()


1. THE COMMISSIONER OF INCOME TAX,
                      ...  Petitioner

                        Vs



1. M/S.SWAPANA TRADERS, CHUNGAM,
                       ...       Respondent

                For Petitioner  :SRI.JOSE JOSEPH, SC, FOR INCOME TAX

                For Respondent  :SRI.P.BALAKRISHNAN (E)

The Hon'ble MR. Justice C.N.RAMACHANDRAN NAIR
The Hon'ble MR. Justice V.K.MOHANAN

 Dated :08/12/2009

 O R D E R
                   C.N.RAMACHANDRAN NAIR &
                              V.K.MOHANAN, JJ.
              ....................................................................
                        I.T. Appeal No.492 of 2009
              ....................................................................
              Dated this the 8th day of December, 2009.

                                     JUDGMENT

Ramachandran Nair, J.

Question raised is whether the Tribunal was justified in

upholding the order of the C.I.T.(Appeals) who held that disallowance

under Section 40A(3) of the Income Tax Act is not called for, for cash

remittances made by the assessee in the Bank accounts of the suppliers.

We have heard Senior Counsel appearing for the appellant and Adv.

Sri.P.Balakrishnan appearing for the respondent.

2. We find from the Tribunal’s order that Tribunal has confirmed

the order of the C.I.T.(Appeals) following decision of the Supreme

Court wherein Supreme Court has held that the purpose of Section

40A(3) is to discourage generation of black money. When assessee

had made cash remittances to the Bank account of the suppliers, the

amount gets accounted and therefore, the violation is only technical.

2

We, therefore, do not find any ground to interfere with the order of the

Tribunal. Consequently the appeal is dismissed.

C.N.RAMACHANDRAN NAIR
Judge

V.K.MOHANAN
Judge
pms