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2024 (3) TMI 819 - AT - Income TaxAddition u/s 40A - purchases in cash in excess of ₹ 20,000/ - case of the assessee that all the cash purchase are fully covered under Rule 6DD(e)(ii) of the Income Tax Rules, as many venders do not have bank account and the purchases were done away from remote areas - whether assessee has fulfilled the condition laid down in Rule 6DD? - HELD THAT:- Considering the fact that out of total purchase of 2,69,92,101/- the assessee had purchased in cash of Rs. 74,67,186/- and also by taking into consideration of the nature of the business of the assessee and by respectfully following the ratio laid down in the case of Gee Square Exports [2018 (11) TMI 658 - SC ORDER], we find merit in the Grounds of appeal of the assessee, accordingly, the disallowances/additions made by the A.O. which has been upheld by the CIT(A) is hereby deleted. Appeal filed by the assessee is allowed.
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