Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 436 - AT - Income TaxAddition u/s 40A(3) - expenditure in excess of ₹ 20,000/- are paid in cash - HELD THAT:- Considering Rule 6DD(e)(i) of the Income Tax Rules, 1962, and when the payment was made by cash exceeding ₹ 20,000/-, it was permissible if the same was paid for purchase of agricultural produces. If there are entries in the books of accounts and payment is shown to have been made to farmers and when receipts were also produced but the assessee could not produce the farmers/list of farmers for which a reasonable explanation was also given, no addition could be made u/s.40A(3) of the Act. Respectfully following the aforesaid decision, we hold that the disallowance made u/s.40A(3) of the Act deserves to be deleted and the same is hereby deleted. Disallowance of interest expenses u/s.36(1)(iii) - assessee submitted that he has utilised part of the loan amounts for speculative and share trading business but a major part is used for his other business particulars like maize trading, and liquor retails - HELD THAT:- The issue raised by the Assessee with regard to borrowed funds not having been used for speculative business and the fact that there was income from speculative business and therefore even otherwise the deduction should have been allowed while computing income from speculation business, has not been considered by CIT(A) and since facts need to be examined in this regard, the matter should be remanded to the AO. We direct accordingly.
|