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2021 (10) TMI 547 - AT - Income TaxDisallowance u/s 40A(3) - cash payments made by the assessee above ₹ 20,000/- in a single day - assessee had not made any vouchers related to cash payments on different dates - HELD THAT:- The assessee, for the sake of its convenience, has mentioned on the bills to separate figures of below ₹ 20000/-. The ld Counsel has argued before the Bench that old ornaments are sold in dire need and necessity. We note that when old ornaments are sold in dire need then why an unknown person (customer) will keep his money with the assessee, as the assessee makes payment in cash to the same customer on next day, (against the old ornaments purchased by the assessee). Further, it is beyond imagination that so many persons will behave in this manner on so many different dates. Thus, we note that arguments made by the ld Counsel is an attempt to avoid the disallowance. We note that no convincing reply has been put forward by ld Counsel and we also observe that arguments made by the ld Counsel is certainly not based on exception given in rule 6DD of the Rules. The argument of ld Counsel is not acceptable in so far, bill no.2608 amounting to ₹ 68,625/- , is concerned, as the same was not included in the total amount of ₹ 22,92,113/-, as noted by the assessing officer The payments to the extent of ₹ 23,22,676/- was made beyond the limit prescribed u/s 40A(3) of the Act and the assessee's case are not covered in the exceptions mentioned under rule 6DD of the Income Tax Rules. Besides, the judgments, cited by the ld Counsel have been distinguished by the ld CIT(A) in his findings, as noted by us in above para, hence we observe that none of the judgment is favoring to the assessee`s case. We are therefore of the considered view that the plea of the ld Counsel does not merit legal acceptance, thus, we sincerely believe that the plea of the ld Counsel must be rejected - Decided against assessee.
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