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2021 (3) TMI 350 - ITAT DELHIDisallowance on account of cash payment towards purchase of land at Ghaziabad, UP under the provisions of Section 40A(3) - HELD THAT:- From the perusal of the assessment order as well as the CIT(A) both the Revenue Authorities have not given any reason as to why Section 40A(3) will be applicable along with Rule 6D (J). In-fact, both the Revenue Authorities have not disputed the identity of the sellers as well as the purchase /sale deed between the parties and the assessee, but whether the payments were bonafide and the consideration of a genuine transaction was properly disclose by the assessee during the assessment proceedings as well as the appellate proceedings is also not specified in both the Revenue Authorities orders. The submissions of the Ld. AR that the cash payments were made on Sunday’s which is a non-banking day but the assessee from the records has not shown as to what was the necessity to make payment on Sundays. Revenue Authorities as well as the assessee has not clearly stated their respective cases u/s 40A(3) read with Rule 6DD(J), it will be appropriate to remand back this matter to the file of the AO for allowing the assessee to establish as to why the payments were made on Sundays and why the applicability of Section 40A(3) does not arise in assessee’s case when land shown in non current investment in the audited financial statements which is not claimed as expenditure in P & L account. Appeal of the assessee is partly allowed for statistical purpose.
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