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2023 (9) TMI 482 - AT - Income TaxAddition u/s 40(a)(ia) - HELD THAT:- As assessee produced the relevant certificate, covering a sum of Rs. 26,84,153/-, and there is no dispute as on this aspect. We, therefore, modify the order of CIT(A) and direct the AO to delete the amount - In respect of the other sums, in the absence of any further evidence, we find it difficult to disturb the findings of the authorities below. Addition u/s 40A(3) - no ledger account regarding such expense was produced and the certificate issued by Santosh Service Station is not an authenticated one - HELD THAT:- The substance of the judicial opinion is that the terms of section 40A(3) of the Act are not absolute and though certain circumstances are contemplated under rule 6DD of the Rules, they are not exhaustive. One such exception approved by the Hon’ble Madras High Court [2020 (9) TMI 543 - MADRAS HIGH COURT] is the incapacity of the assessee to make the payment through banking channel due to freezing of the bank account by order of Governmental agency, in that case, the ESI department. Assessee produced the copies of such attachments issued by the Income Tax Department by way of notice dated 12/08/2013, u/s 226(3) of the Act and prohibitory order dated 25/11/2013 by the Employee Provident Fund Organization. The view taken ATTAR SINGH GURMUKH SINGH VERSUS INCOME-TAX OFFICER, LUDHIANA [1991 (8) TMI 5 - SUPREME COURT] and the Hon’ble Madras High Court in the cases referred to above is applicable to the facts of the case. We are of the considered opinion that the addition under section 40A(3) of the Act is not sustainable. Consequently, we direct AO to delete the same. Appeal of the assessee is allowed in part.
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