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2017 (9) TMI 1672 - HC - Income TaxG.P. estimation @ 3% - assessee has clearly violated the provisions of section 40A(3) - cash payments of above ₹ 20,000/were made for the purchases of waste paper - Held that:- The assessee pointed out that in the nature of business, he was engaged, it was not possible to make payment always in cheque. The Tribunal accepted such explanation. It appears from the record that the assessee was in the business of trading in waste paper, collecting it from traders and providing to factories for recycling. The Tribunal therefore, correctly held that the purchases made by the assessee from such small traders would often time be in cash. The assessee has thus offered proper explanation. No question of law arises. - Decided against revenue
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