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2014 (12) TMI 934 - HC - Income TaxEffect of amendment u/s 40A(3) w.e.f. 1.4.2009 – Total cash payments towards expenditure made to a particular person during a day to be aggregated or not - distributors were not ready to give him goods on credit for even one or two days - Held that:- The Tribunal rightly relied upon in COMMISSIONER OF INCOME-TAX Versus DALIP CHAND AND SONS [2008 (1) TMI 205 - HIMACHAL PRADESH HIGH COURT] - other dealers similarly situated were making payments by crossed cheque – in COMMISSIONER OF INCOME-TAX Versus DALIP CHAND AND SONS [2008 (1) TMI 205 - HIMACHAL PRADESH HIGH COURT] - transactions themselves were found to be extremely doubtful and appeared to be fraudulent - in terms of the amendment made to Section 40A(3) of the Act, aggregation of the total payments during the day has to be made - the amendment is applicable w.e.f. 1st April, 2009 - assessee had pointed out that he had expanded the ambit and area of business to include sale of mobile phones, mobile phone accessories and recharge coupons - He had made purchases of ₹ 1,38,43,525/- for which payments were made to two parties in cash - there are several mitigating factors to show and establish commercial expediency and reasons for making the purchases – thus, the order of the Tribunal is upheld – Decided against revenue.
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