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2015 (5) TMI 1212 - ITAT CUTTACKAddition u/s 40A(3) - Cash payment for transporting charges in excess of ₹ 20,000/- for a single transaction - CIT-A restricted the disallowance @ 10% - assessee argued that the AO has pointed out only two expenses of truck No.1152 and truck No.2096 where each payment on a single day though was below ₹ 20,000/- but after aggregate the expenses is less than ₹ 20,000/- therefore, no addition is called for - HELD THAT:- On one hand, the CIT(A) is holding the order of the AO as wild and capricious and no estimate should have been made whereas on the other hand, he himself is restricting the disallowance at 10% of total claim, which is contradicting his decision. AO has pointed out only two instances with respect to truck No.1152 and truck No.2096 where each payment is less than ₹ 20,000/- and, therefore, in our view no violation of provisions of section 40A(3) with respect to two instances have been made. No addition is called for and addition so sustained by the ld CIT(A) is directed to be deleted. - Decided in favour of assessee.
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