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2013 (11) TMI 15 - HC - Income TaxDisallowance because of violation of section 40A(3) of the Act read with Rule 6DD of the Income Tax Rules – Cash payment in excess of prescribed limit - Held that:- Suppliers of the assessee, who were delivering the goods to him invariably insisted on spot payment of cash to the lorry drivers. There is absolutely no evidence for this. The Tribunal went on to hold that since the suppliers do not have bank account in Vijayawada and because they could not rely upon the creditworthiness of the assessee, they did not extend any credit facilities to him. There was an insistence on payment for the supply of goods in cash. In this regard also, there is absolutely no material on record. The Tribunal has further come to the conclusion that, according to the assessee, he used to be ridiculed by the suppliers with regard to obtaining confirmations concerning the transactions. Again, there is absolutely no evidence in this regard - Reliance has been placed upon the judgment in the case of Late Smt. Jyothi Chellaram v. CIT [1988 (3) TMI 36 - ANDHRA PRADESH High Court] – Decided in favor of Revenue.
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