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2015 (4) TMI 788 - ITAT DELHIAddition u/s 40A(3) of the Income Tax Act,1961 - Exceptions under Rule 6DD of the Income Tax Rules - Cash payment made due to cheque bounced - Held that:- We note that the assessee has raised two contentions to the action of the authorities below first, the payment was made in cash exceeding the prescribed limit because the cheques issued to M/s Keshav Motors by the assessee had bounced and the said supplier on certain occasions refused to provide diesel to out gone vehicles and insisted for cash payment in lieu of the bounced cheques and under these exceptional circumstances driver/person as accompanying the vehicle on some occasions had to make payment in cash. The 2nd contention of the assessee company is that the payment so made by the assessee exceeding prescribed limit prescribed by the Act falls under exception (g), (j) & (k) of Rule 6 DD of the Rules. Coming to the issue of payment against bounced cheques is concerned, we note that the copy of the bank statement available on page no. 12 to 19 of the paper book of the assessee. We note that as many as five cheques has been returned / bounced and the assessee has made payment of ₹ 4,68,655/- in cash in violation of provisions of the Act on number of occasions and the payment made in cash does not match with the amount of cheques bounced. Be that as it may, we also note that the payment made by the assessee does not fall any circumstances prescribed in Rule 6 DD of the IT Rules, 1962. We may note that the words used Rule 6DD are specified the cases on circumstances and no case or circumstance can be employed or interpreted which is not specifically provided in Rule 6DD. - Decided against the assessee.
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