Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (3) TMI 1574 - MADRAS HIGH COURTDisallowance u/s 40A(3) - payments made in Cash - whether cash payments were necessitated by a written contract and therefore, should be allowed on consideration of business necessity? - HELD THAT:- Assessee has not been able to bring his case under anyone of the conditions stipulated in the said Rule and therefore, confirmed the disallowance made by the Assessing Officer. The correctness of the order passed by the CIT(A) was contested before the Tribunal. The Tribunal after re-examining the factual position held that the assessee has not been able to substantiate the existence of any circumstance which would call for application of Rule 6DD(j) and therefore, confirmed the order passed by the CIT(A). On going through the factual position, we find that the assessee himself admitted the cash payment and pleaded that there was business necessity warranting cash payment. Unfortunately, the Statute does not provide for any relief to such an assessee and if at all, the assessee should escape from the rigour of Section 40A(3), then he should bring his case within the ambit of Rule 6DD(j), which assessee was miserably failed. No substantial question of law.
|