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2015 (7) TMI 1283 - ITAT RAIPURAddition u/s 40A - assessee has purchased land from the parties and made payments exceeding ₹ 20,000/- - Held that:- Business compulsion of the assessee that the assessee had to accept the insistence of the villagers as the assessee has purchased a large chunk of land and wanted to acquire the adjacent land in vicinity for launch of its project. It had to agree to some of the villagers in their demand of cash payments although the assessee was able to make major purchases by cheque. Moreover it is also on record that photos of sellers duly signed by them are recorded on the sale deed which was registered before the Sub Registrar. Thus reasonable cause for the assessee’s failure to make payment otherwise than by crossed cheques Payees in this case also are illiterate villagers who wanted some of the payments to be done in cash. There is no dispute regarding identity of the payees and genuineness of the transaction. Moreover the above observations of the Tribunal in case of Saraswati Housing and Developers [2013 (12) TMI 1114 - ITAT DELHI] are squarely applicable on the facts of the case. - decided in favour of assessee.
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