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2014 (4) TMI 312 - ITAT AHMEDABADDeletion on account of material purchase Held that:- The expenses have been claimed in respect of material consumed despite the assessee-company a labour work contractor CIT(A) was of the view that the appellant had earned Rs.2,47,14,317/- from contract work and the spent on materials was only Rs.9,12,549/- which is very negligible - the terms of agreement also provides for use/supply of some materials revenue could not bringing any contrary material on record to controvert the findings of the CIT(A) thus, there is no infirmity in the order of the CIT(A) Decided against Revenue. Deletion u/s 40A(3) of the Act Cash payment exceeds the per day limit Held that:- CIT(A) was of the view that the provisions u/s 40A(3) of the Act provides for certain exception for the application of the provisions - the project undertaken by the appellant was in a remote area and no banking facility was available - If the payment is made in a village or town, which on the date of such payment is not served by any bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town the site where the work is being carried out is not served by any bank - Revenue has not placed anything on record suggesting that there was any branch of bank near the place where the payment has been made thus, there was no infirmity in the order of the CIT(A) Decided against Revenue.
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