TMI Blog2013 (4) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... e before us, even today, the assessee has not come forward to offer such expenditure in the profit and loss account, when more than 6 years have been passed. For the time being, even if it is presumed that the assessee will come forward in the subsequent year, but in that year, keeping in view the period of limitation, no disallowance could be agreed by the assessee in respect of cash payment made for expenditure incurred in the assessment year 2006-07. Furthermore, entries made in books of account is not so relevant for allowing or disallowing a claim of deduction which is necessarily to, be allowed as per provisions of Income-tax Act, 1961. Accordingly, we confirm the action of the CIT(A) for upholding the disallowance so made under Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... diture was claimed in profit and loss account during the year, therefore, the Assessing Officer was not justified in invoking the provisions of Section 40A(3). Reliance was also placed on the decision of the Coordinate Bench, wherein disallowance made u/s 40A(3) was set-aside on finding that expenditure were not actually claimed in profit and loss account. 7. On the other hand, it was contended by the ld. Senior DR that decisions cited by the assessee are distinguishable on facts, in so far as clear finding has been recorded by the ld.CIT(A) to the effect that land so purchased was forming stock in trade, which has been entered in the books of account as trading assets. As the assessee had made part payment in cash which is in violation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f such expenditure, which is made in cash during the year under consideration. As per our considered view, giving such direction for deferring the disallowance to subsequent years will frustrate the purpose of Section 40A(3), which is meant for discarding cash payment made during the year in respect of trading goods. Furthermore, there will always be uncertainty as to the year in which the assessee come forward and claim such expenditure in its profit and loss account. In the instant case before us, even today, the assessee has not come forward to offer such expenditure in the profit and loss account, when more than 6 years have been passed. For the time being, even if it is presumed that the assessee will come forward in the subsequent yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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