Itta/232/2014 Of Commissioner Of Income Tax-Ii v. Hyderabad Race Club, Malakpet

HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDHON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.232 of 2014 Date: 27.03.2014 Between:Commissioner of Income Tax-II,Hyderabad .....Appellant AND Hyderabad Race Club,Hyderabad ...Respondent HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDHON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A.No.232 of 2014 JUDGMENT:(per Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta ) This appeal is directed against the judgment and order of the learnedTribunal dated 7[th] March 2012 in relation to the assessment year 2005-06and sought to be admitted on the following suggested questions of law: A. Whether, on the facts and circumstances of thecase, the Appellate Tribunal is justified in deleting thedisallowance made under Section 40A(3) of the Income TaxAct, 1961 on account of payments made in cash in excess ofRs.20,000/-? B. In spite of there being no detracting factors againstpayment of winning amount by cheque to the punters, whetherthe Appellate Tribunal is justified in directing extension of thebenefit of Rule 6DD(j) of the IT Rules to the transactions inquestion merely on account of the payment being made on aholiday? The aforesaid questions clearly indicate that the appeal is preferredin relation to a portion of the judgment. We have seen the findings of thelearned Tribunal, wherein it is held that the payments made to punters onthe winning tickets clearly constitute business expenditure and the same issquarely covered under the provisions of Section 40A(3) of the Income TaxAct, 1961. When the fact-finding supports the law, we cannot reappreciatethe same. We, therefore, upheld the decision of the learned Tribunal in thismatter. Accordingly, the appeal is dismissed. No order as to costs. ___________________ K.J. SENGUPTA, CJ __________________ SANJAY KUMAR, J 27-03-2014 Gsn