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2022 (8) TMI 300 - AT - Income TaxAddition u/s 40A(3) - payment made to the driver of the lorry of the Supplier - As per AO payments have been made to labours for cleaning of pond, for JCB baffling charges, for purchase of sand, bricks, jally, purchase of salt, etc. and the assessee has not provided any evidences namely, bills and vouchers to prove that said payments had been made to cultivator, grower or producer in order to be excluded under section 40A(3) by virtue of Rule 6DD(e) - HELD THAT:- Assessee has to make the payment by account payee cheque drawn on a bank or account payee bank draft and then only deduction will be allowed. In the present case, the assessee has paid to his agent through bearer cheque, in turn; his agent has withdrawn the cash. From the above it is very clear that the assessee has violated section 40A(3). In this case, neither the assessee nor his agent has able to establish that the payments are made to farmers. The Agent of the assessee Shri Chinna says that he was not having any details of farmers and after purchase, the entire material has been transported to the assessee and the assessee is only handling the remaining part of the business. Shri Chinna further says that he was not having the details of farmers to whom payment was made. The assessee Shri Shahjahan says that he was not aware from whom the copras were purchased by his agent and also supplied directly by his agent to M/s. VVD & Sons. Ultimately, neither the assessee nor his agent is able to prove that the payments have been made to the farmers. Therefore, the case of the assessee does not come within the purview of exception provided under Income Tax Rules in Rule 6DD(k). That apart, during the course of assessment proceedings, the Assessing Officer has asked the assessee to furnish the details of purchases and supplies made to M/s. VVD & Sons and no details are filed inspite of repeated request made by the Assessing Officer. Even before us, no details are filed. Only in the written submissions, figures are stated and figures are not amounting to details of purchases and sales which are actually required for adjudication. Assessee has not furnished any details as to whom the payments were made. Accordingly, we reverse the common order passed by the ld. CIT-A for all the assessment years under appeal and restore that of the assessment order passed by the AO. Accordingly, the ground raised by the Revenue is allowed for all the assessment years. Since similar grounds on identical facts and circumstances have been raised by the Revenue in respect of all other assessee and accordingly, the appellate order passed by the ld. CIT(A) in respect of other assessee have also been reversed and restored that of the assessment order passed by the Assessing Officer for all the assessment years under appeal. Accordingly, all the appeals filed by the Revenue are allowed.
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