IN INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH SMC , BANGALORE BEFORE SHRI A.K.GARODIA, ACCOUNANT MEMBER ITA No. 1494(Bang) 2016(Assessment year : 2008 09) ITO, Ward 1 (1), Hubballi Respondent Vs Shri Hafizhussain A. Kamangar, Prop.: Abdulla Traders, No. 9/A, APMC Yard, Hubballi PAN : ABOPA2469C Appellant Assessee by : None Revenue by : Shri Naresh Saka JCIT Date of hearing : 19-09-2016 Date of pronouncement : 21-09-2016 ORDER PER A. K. GARODIA, A.M.: This appeal is appeal filed by revenue. This is directed against order of learned CIT (A) Hubli dated 31.03.2016 for A. Y. 2008 09. 2. None appeared on behalf of assessee in spite of notice and hence, I proceed to decide this appeal of revenue exparte qua assessee. Learned DR of revenue supported assessment order. 3. I have considered facts of case and gone through orders of lower authorities. I find that grievance of revenue is about deletion of disallowance made by A.O. u/s 40A (3) of I. T. Act. I also find that this was claim of assessee before A.O. also that major payment of Rs. 47,06,099/- out of total cash payments of Rs. 48,31,756/- is made to one m/s Abdulla Sab Kamangar, who was acting as agent for purchase of Onion and therefore, as per clause (k) of Rule 6DD 2 ITA No. 1494(Bang) 2016 of Income Tax Rules, 1962, Section 40A (3) is not applicable. A.O. decided matter against assessee on this basis that as per ledger account of this party, it is seen that all credit entries are shown as By Onion Purchase Account and therefore, it cannot be said that this payment was made to this party for acting as agent. I find no valid basis of this objection of A.O. Learned CIT (A) has given categorical finding on page 11 of his order that assessee has filed complete details of agent i.e. certificate from APMC that Shri Abdulla Sab Kamangar is agent and also filed confirmation from agent that he insisted for cash payment only for purpose of distribution of same to growers of Agricultural Produce and these findings of learned CIT (A) could not be controverted by learned DR of revenue. Hence, I decline to interfere in order of CIT (A). 4. In result, appeal of revenue is dismissed. Order pronounced in open court on date mentioned on caption page. (A.K. GARODIA) ACCOUNTANT MEMBER Bangalore: Dated: .09.2016 am* Copy to : 1 Appellant 2 Respondent 3 CIT(A)-II Bangalore 4 CIT 5 DR, ITAT, Bangalore. 6 Guard file 3 ITA No. 1494(Bang) 2016 By order, AR, ITAT, Bangalore 1. Date of Dictation .. 2. Date on which typed draft is placed before dictating Member . 3. Date on which approved draft comes to Sr. P. S. .. 4 Date on which order is placed before dictating Member for pronouncement .. 5. Date on which order comes back to Sr. P.S. .. 6. Date of uploading order on website .. 7. If not uploaded, furnish reason for doing so . 8. Date on which file goes to Bench Clerk .. 9. Date on which order does for Xerox & endorsement . 10. Date on which file goes to Head Clerk . 11 date on which file goes to Assistant Registrar for signature on order . 12 date on which file goes to dispatch section for dispatch of Tribunal order 13 Date of dispatch of order ITO, Ward 1 (1), Hubballi v. Hafizhussain A. Kamangar