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2022 (7) TMI 339 - HC - Income TaxAddition u/s 40A(3) - payment in cash - purchase of stock in trade - Decision of the Third Member of ITAT - The decision of HC, relied upon the revenue distinguished - HELD THAT:- As Court had rendered a decision holding that cash payment exceeding prescribed limit would attract Section 40A(3) of the Act. Therefore, the said decision is distinguishable on facts. Learned Advocate appearing for the respondent/assessee placed reliance on the decision of the High Court of Gujarat in the case of CIT-III vs. Dinesh Kumar Chandmal Jain[2013 (12) TMI 1731 - GUJARAT HIGH COURT] - In the said case, the assessing officer found that the assessee had paid an amount of Rs.18.22 crores in cash to six parties and disallowed 20% of such payment under Section 40A(3). However, the assessing officer was not in a position to actually prove that payment was made in cash, and, therefore, the said disallowance was set aside by the tribunal and the order passed by the tribunal was confirmed by the Hon’ble Division Bench in the case of Dinesh Kumar Chandmal Jain (supra). In fact, on facts, the case on hand is in a better footing as the revenue does not state that any cash transaction took place. Considering the facts and circumstances, we find that there is no perversity in the order passed the learned third member of the tribunal agreeing with the learned administrative member of the tribunal. - Decided against revenue.
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