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2019 (1) TMI 932 - AT - Income TaxDisallowance of payments made to sub-contractors both on genuineness and u/s 40A(3) - assessee is engaged in the business of civil construction and excavation and evacuation of dry fly ash from the plant - Held that:- From perusal of the cash book of the three sub-contractors and the assessee and found that the assessee had not made cash payments exceeding ₹ 20,000/- on a single day . Hence there is no violation of provisions of section 40A(3) of the Act. Admittedly, the ledger accounts of sub-contractors were obtained by the ld AO directly from the sub-contractors u/s 133(6) of the Act, wherein these facts were found. These details were obtained admittedly by the ld AO behind the back of the assessee and nothing adverse was found thereon. Moreover, we find that the AR rightly drew our attention to the relevant page of the paper book containing work orders wherein the sub-contractors had mandated payments to be made to them in cash every day to meet their day to day expenses for daily labour and lorry hire for smooth execution of the work. Hence business expediency of making cash payments on a regular basis is also proved by the assessee in the instant case. CIT-A had rightly deleted the disallowance of expenditure on account of genuineness and also u/s 40A(3) of the Act, which in our considered opinion, does not call for any interference - decided against revenue
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