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2021 (4) TMI 172 - AT - Income TaxDisallowance u/s 40A - assessee had made cash purchases exceeding ₹ 20,000/- in violation of provisions of section 40A(3) - assessee drew our attention to the CBDT Circular No. 8 of 2006 dated 06.10.2006 and pointed out that the lower authorities have wrongly interpreted the mandatory clauses of this Circular - HELD THAT:- As per CBDT Circular No. 8 of 2006 dated 06.10.2006specifically mentioned that any person who buys animals from the farmers, slaughters them and then sells the raw meat carcasses to the meat processing factories or to the traders/retail outlets would be considered as producer of livestock and meat. This means that even the traders and retailers are covered by this Circular. The assessee drew our attention to the relevant documents of the paper book and stated that the assessee has fulfilled all the three mandatory conditions in support of his claim. However, we are of the considered view that since the lower authorities have not considered the CBDT Circular in its true perspective, these documents remained unverified. Therefore, in the interest of justice, we restore this issue to the file of the Assessing Officer. The assessee is directed to furnish all evidences demonstrating that he has fulfilled the mandatory conditions for getting benefit of Rule 6DD of the Rules and the Assessing Officer is directed to examine the evidences and decide this issue afresh after giving reasonable and sufficient opportunity of being heard to the appellant. Appeal filed by the assessee allowed for statistical purposes.
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