parties and in
some cases are covered by circumstances notified in Rule 6DD
particularly Rude DD (j) of the I.T Rules, 1962. Therefore ... circumstances specified under the rule. It will be clear from the provisions of section
40A(3) and rule 6DD that they are intended to regulate
that the said expenditure was covered within the exception
provided in Rule 6DD(j), unlike the purchases of Rs.15 lakhs
Page ... Rules, no disallowance under sub-section (3) of
section 40A shall be made. In other words, exemptions are carved out
under rule 6DD when purchase
rejected reliance on Clause g to Rule 6DD of Income Tax Rules, 1962
('Rules' for short) to the effect that payments were made ... crores. This was illogical and could not be
accepted. Relying upon Rule 6DD(g) of the Rules and after making
reference to several decisions
covered by
the rule that is made in this behalf, they shall not be disallowed.
A perusal of Rule 6DD of the Income Tax Rules ... various States, are brought under the purview of the Rule. Clause
(j) of Rule 6DD conferred discretion upon the Assessing Officer to
verify the circumstances
payment for
expenditure would be covered under the exceptions
provided in Rule 6DD(j) or not will depend on the
peculiar facts and circumstances ... applicable, the expenditure would be covered by
the exceptions provided in Rule 6DD(j) of the
Rules.
16. It is a matter of fact that
Tribunal found that the Tribunal
had not considered the effect of rule 6DD (j) of the Income-tax Rules, which is a
statutory rule
noticed that the
legislature in terms has removed the provisions
of Rule 6DD(j) keeping in view the intention
that main purpose of introducing provisions ... this background that the Court resorted
to Rule 6DD(j) of the Income Tax Rules, 1962 and
deleted the disallowance. It is true that
appreciated the fact none of the
exceptional clauses of Rule 6DD were
applicable to the expenditure
disallowance u/s 40A(3)?"
2. Learned Counsel
this appeal we
require some assistance regarding the interpretation of Rule 6DD(j) of the Income
Tax Rules, 1962 regarding whether or not 'labour
made to the Government were in accordance with the provisions of
Rule 6DD(b) ?
(ii) Whether On the facts and in the circumstances ... relief to the assessee by
invoking the provisions of law under Rule 6DD(b) without
appreciating the fact whether retail vendor can deposit in cash
