Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 1405 - AT - Income TaxDisallowance u/s. 40A(3) - cash expenditure of the assessee exceeding permissible limits - Held that:- It is not disputed that assessee has produced books of accounts before AO. In fact the assessment order specifically states so. Rigours of Sec. 40A(3) is attracted only where payments in relation to expenditure exceeded A 20,000/- in a day to a person. In our opinion, methodology adopted by the ld. Assessing Officer was incorrect and ld. Assessing Officer ought have compiled the instances of cash payments if any in excess of the limits, from the cash book maintained by the assessee. Thereafter he should have called for explanation of the assessee, in each case for which there was excess cash payment. In the facts and circumstances of the case, we are of the opinion that the issue requires a fresh look by the ld. Assessing Officer. We set aside the orders of the lower authorities and remit the question for reconsideration - Appeal of the assessee allowed for statistical purpose Levy of penalty u/s.271B - failure to conduct the Audit under section 44AB of the Act and to furnish the reports - Held that:- It is not sufficient that an explanation is given. Such explanation has to be proved and substantiated. Nothing has been brought on record by the assessee to substantiate its argument that its Accountant had resigned or to show that non compliance with the statutory provisions was due to difficulties beyond the control. Assessee was in the business since many years. For the preceding assessment year also assessee had filed its tax audit report belatedly. We are thus of the opinion that assessee could not bring out any reason which could be termed as reasonable. In our opinion, levy of penalty u/s.271B of the Act was justified. - Decided against assessee.
|