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2016 (10) TMI 193 - ITAT PUNEAddition u/s 40A - payment of expenditure in cash - Held that:- On certain facts available on record such as confirmation of the parties, identity of the payee, payment made by bearer cheques, etc. as noted above. In the present case, we do not find any evidence referred to by the CIT(A) which is formed the foundation for granting the relief. The CIT(A) has merely reiterated the findings given by his predecessors and the ITAT in the earlier year. The question is essentially factual and requires ascertainment of certain facts. The assessee is duty bound to explain the circumstances which compelled him to discard the provisions of section 40A(3) or (3A) of the Act and explain business expediency for making payment otherwise than by account payee cheques each year. These facts are not at all clear on record. The ‘Statement of Facts’ filed before the CIT(A) also does not appear to explain the cause for contravention of the provisions of section 40A(3) or section 40A(3A) of the Act. Thus, facts of the case, for departure from mandate of section 40A(3) or (3A) requires to be appreciated. In this view of the matter, we restore the matter back to the file of the Assessing Officer for examination of the relevant facts de novo in accordance with law in the light of the ratio laid down by the Co-ordinate Bench of the Tribunal in assessment year 2008-09. Needless to say, assessee shall be afforded proper opportunity of being heard while determining the issue.
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