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2021 (6) TMI 451 - AT - Income TaxAddition u/s 40(A)(3) - payments exceeding permiciable limit - expenditure incurred in cash towards purchase of goods - HELD THAT:- We find that there is no dispute that the assessee has made certain payments exceeding ₹ 20,000/- in cash and therefore, the provisions of section 40(A)(3) would get attracted provided the transaction fall under Rule 6DD of IT Rules. The explanation given by the assessee was that all the purchases were made on Saturdays and that too after banking hours. This contention has not been verified by the Assessing Officer. This contention of the assessee falls under clause (j) of Rule 6DD. Therefore, the Assessing Officer is directed to verify the same denovo. Needless to mention that the assessee should be given a fair opportunity of hearing. Assessee's appeal is treated as allowed for statistical purposes.
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