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2016 (7) TMI 952 - ITAT MUMBAIAdditions made u/s 40A(3) read with Rule 6DD - cash payment for expenditures - bifurcation of payment - Held that:- As the assessee-firm has taken a plea and contended that each payment in a day to the payee’s is less than ₹ 20000/- and the case is covered under exception as provided u/r 6DD of Income Tax Rules, 1962 as the individual payment in a day is to be reckoned separately for considering exception u/r 6DD of Income Tax Rules, 1962 and not aggregate payments in a day which is supported by the decisions relied upon by the assessee-firm as set-out above, but the assessee-firm has to bring on record cogent evidences to substantiate the same plea which need examination and verification by the authorities below. It is incumbent for the assessee-firm to bring on record the evidences and circumstances to prove its case that it falls under the exception to Section 40A(3) of the Act provided u/r 6DD of Income Tax Rules,1962. Keeping in view the overall facts and circumstances of the case, we are of the considered view that the matter needs to be set-aside and restored back to the file of the A.O. for fresh adjudication on merits based upon the evidences and explanations filed by the assessee-firm to substantiate and corroborate its pleas which need examination and verification by the authorities below. Accordingly we set aside this matter to the file of the A.O. and direct the A.O. to scrutinize the evidences and explanations filed by the assessee firm and evaluate the attraction of provisions of section 40A(3) of the Act read with exceptions as provided under Rule 6DD of Income Tax Rules, 1962 and de novo redetermine the matter in accordance with law and judicial precedents - Decided in favour of assessee for statistical purpose
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