Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (2) TMI 328 - AT - Income TaxAllowing payments U/s 40A(3) - Held that:- Once books are rejected then AO cannot make separate additions in respect of different items and, therefore, this observation of AO is not legally sustainable in view of the decision of Hon’ble Supreme Court in the case of Commissioenr of Sales Tax Vs. H.M. Esufali H.M. Abdulali [1973 (4) TMI 49 - SUPREME Court]. The plea of payments were made on bank holidays have not at all been considered by AO and, therefore, the same is to be examined by AO afresh. Further, ld. counsel has referred to page 12 of PB wherein details of payment over ₹ 20,000/- and less than ₹ 20,000/- is made aggregating to ₹ 3,69,407/- and this also needs to be examined by AO. Therefore, this ground is allowed for statistical purposes in respect of aforementioned observation. Disallowance of freight - Held that:- Assessee has not been provided cross-examination of proprietor of Chacha Transport Co. and, therefore, the matter is restored back to the file of AO to provide opportunity to cross-examine the proprietor of Chacha Transport Co. Accordingly, this ground is allowed for statistical purposes.
|