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2019 (3) TMI 1064 - AT - Income TaxDisallowance u/s.40A(3) - payment to a single party in a single day - payments made to the transporters in cash in excess of ₹ 20,000/- - HELD THAT:- Payment more than ₹ 20,000/- in aggregate to a single party in a single day could not be declined prior to the A.Y.2009-10. It is not in dispute that the present case is in connection with the A.Y.2005-06, therefore, undoubtedly, the provision of aggregate payment to a single party in a single day would not applied in the present assessment year of the assessee i.e.2005-06. Addition on account of payment made to transporter in excess of ₹ 20,000/- u/s.40A(3) the assessee has given the PAN Nos. of some parties to whom the payment was made. With regard to some parties whose PAN Nos. have not given. Since the claim of the assessee has not been verified on the basis of evidence given by the assessee, therefore, we are of the view that the claim of the assessee is liable to be verified in the light of evidence adduced before us in accordance with law. Accordingly, we set aside the finding of the CIT(A) on this issue and direct the Assessing Officer to examine the claim of the assessee afresh after providing an opportunity of being heard to the assessee in accordance with law. Accordingly this issue is decided in favour of the assessee. Addition as suppressed production - information was received from Commissioner of Central Excise and Customs Aurangabad that the assessee indulged in suppression of production and clandestine removal of finished products without payment of excise duty - HELD THAT:- The addition was raised on the basis of the information received from the Central Excise and Customs, Aurangabad dated 29.03.2010. The suppression of production was assessed on the basis of different criteria reported by the IIT, Kanpur in their Technical Opinion Report. The assessee challenged the addition before the Custom Excise and Service Tax Appellate Tribunal (CESTAT) who deleted the addition. The CIT(A) has also deleted the addition raised by the Assessing Officer on the basis of the decision of the Custom Excise and Service Tax Appellate Tribunal (CESTAT). We also find that this question has already came up before the Hon’ble ITAT which has been answered in favour of the assessee. See BHAGYALAXMI STEEL ALLOYS PVT. LTD. [2015 (11) TMI 14 - ITAT PUNE]and SRJ PEETY STEELS (P) LTD. VERSUS ADDL. CIT [2015 (1) TMI 1228 - ITAT PUNE] - Decided in favour of the assessee
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