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2018 (5) TMI 1000 - AT - Income TaxAddition made u/s 40A(3) - payment made otherwise than by cheque or crossed demand draft above ₹ 20,000/- - Held that:- The said payment has been made by way of bearer cheques before registering authority. Another aspect of the same is that the said payment was made at the instance of sellers as they were reluctant to get the document registered till the amount was received in totality. The assessee has furnished declaration signed by both the parties on which along with signature date mentioned was 12.03.2012. In the entirety of the above said facts and circumstances, where the payment has been (a) made before registering authority; (b) made by way of bearing cheques, since the entries in the bank statement reflects the names of two parties and also because of compelling circumstances of the sellers asking for such payment, then we hold that there is no merit in invoking provisions of section 40A(3)to such transactions. - Decided in favour of assessee.
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