The Kerala High Court upheld the addition under section 40 (3) of the Income Tax Act, 1961 in the absence of material Evidence.
P V Thomas, the petitioner challenged the order of the Income Tax Appellate Tribunal, Cochin Bench. The appellant, who is a dealer in used cars, had filed a return of income on 12.12.2015 for the assessment year 2015-2016 declaring a total income of Rs.13,54,160/-.
The assessment under Section 143 (3) of the Income Tax Act was completed by disallowing the cash payment of an amount of Rs.11,59,000/- under Section 40A (3) of the Income Tax Act. The appellant filed an appeal before the First Appellate Authority, who noticed that the appellant had actually agreed to the addition of Rs.11,59,000/- under Section 40A (3), and hence he could not be said to be aggrieved by the assessment order since it was an agreed order.
On further appeal, the Tribunal also agreed with the First Appellate Authority. It is against the said order of the Appellate Tribunal dismissing the appeal of the appellant, that he has now approached the Court through the present Income Tax Appeal.
Sri.Harisankar V. Menon, the counsel for the appellant and Sri.Jose Joseph the Standing counsel for the Income Tax Department.
A division bench of Dr Justice A K Jayasankaran Nambiar & Dr Justice Kauser Edappagath observed that “the appellant had admitted the addition under Section 40A (3) of the Income Tax Act and further, had not produced any material before any of the Appellate Authorities to suggest that the addition was not warranted, the finding of the Tribunal based on the admission of the appellant does not warrant any interference in this appeal.”
The Court dismissed the appeal.
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