Mina Wood Industries vs. The Income Tax Officer

Parties Involved

Facts Summary

The assessee, Mina Wood Industries, has appealed against the order passed by the Additional Commissioner of Income Tax (Appeals) in proceedings under section 250 of the Income Tax Act, 1961. The assessee argues that the disallowance of cash payments made to Kerala State Electricity Board (KSEB) in excess of Rs. 10,000 is against the provisions of the Income Tax Act. The assessee contends that KSEB is a government department under the Kerala Government and the payments made to KSEB are covered by the exception in Rule 6DD(b) of the IT Rules. The assessee further argues that the payments are identifiable and genuine, being in the nature of payment for electricity charges. The assessee cites precedents from the Supreme Court and the ITAT to support their contention.…

Legal Issues

• 1. Whether the disallowance of cash payments made to Kerala State Electricity Board (KSEB) is valid under Section 40A(3) of the Income Tax Act?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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