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2009 (6) TMI 565 - HC - Income TaxBusiness Expenditure- The Assessing Officer added a sum in the income of the assessee u/s 40A(3) on the ground that the payment were not made by crossed cheque or crossed bank draft and no exceptional circumstances under which such payments were made in cash were pleaded. The Commissioner of Income Tax (Appeals) confirmed this. The Appellate Tribunal held that the assessee had fully explained the details of payment made in cash, that the entire evidence in the form of bill, cash memo etc. had also been furnished by the assessee, that the payment had been made under unavoidable and exceptional circumstances and that the genuineness of the transactions and the identity of the persons to whom the payments were made had not been doubted. Held that- the nature of the business of the assessee and the transactions made with respect to the expenditure incurred during the business as well as the evidence adduced before the Tribunal with regard to the cash transactions showed that the case of the assessee was covered under rule 6DD of Income Tax Rule. .
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