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2013 (9) TMI 128 - PUNJAB & HARYANA HIGH COURTDisallowance u/s 40A(3) - Payment in cash in excess of Rs. 20,0000 - exception under rule 6DD - emergency purchase - Held that:- A perusal of findings recorded by the Assessing Officer as well as the CIT(Appeals) reveals that cash payment to M/s Munak International Private Limited was sought to be justified on the ground that it was an emergency purchase. The explanation was concurrently rejected by the Assessing Officer and the CIT(Appeals) by holding that such purchases cannot be held to be emergency purchases and even otherwise Mr. R.K.Garg, Managing Director of the assessee is a Promtoer/Director of M/s Munak International Private Limited and the office of these companies is housed in the same building. The Income Tax Appellate Tribunal has not reversed findings that purchase of “marble chips and alluminium” are not emergency purchases by merely recorded a sentence that the fact that one of the Directors of the company was the same, does not mean that parties were known to the assessee. We do not propose to delve into this reason but as the Tribunal has not referred to or reversed the finding recorded by the Assessing Officer, that purchase of marble chips and alluminium product cannot be said to be an emergency purchase justifying payment in cash. The order passed by the Tribunal suffers from an error of jurisdiction, as it has reversed a pure finding of fact without reversing the reasons assigned by the Assessing Officer and the CIT(Appeals), for rejecting the assessee's explanation - Decided against the assessee.
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