Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (3) TMI 672 - AT - Income TaxAddition u/s 40A(3) - cash payments were made to truck drivers and to the agents of coal suppliers who had supplied coal through trucks at the brick kilns of the assessee firm - HELD THAT:- Banking facility at village Ballarpur were not there as has been rightly observed by the CIT(A) at para 5.2.2 of his appellate order.It is also noticed that since, the truck drivers and the coal agents deliver the coal at night because of heavy vehicles cannot ply during the daytime and insistance for cash payments, hence the assessee was obliged to do the cash payments as per business practice in that area where lots of brick kilns are there. A.O. has not found any fault with the payment nor has disbelieve the payment made for the coal suppliers who are duly registered with the VAT department. The payment has not been doubted by the A.O. or by the Ld. CIT(A), hence looking to the facts that the payments were made after the banking hours and that too at village Ballarpur, where there are no banking facilities, we are of the considered opinion that even this amount should not have been disallowed u/s 40A(3) read with Rule 6DD of the Income-Tax Rules as the CIT(A) had observed in respect of payments made to truck drivers where he deleted the part cash payment. In that matter, the CIT(A) was not justified in confirming part additions under the same set of facts. - Decided in favour of assessee.
|