Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (5) TMI 635 - AT - Income TaxRevision u/s 263 - issue of cash payment exceeding ₹ 20,000/- and the invocation of provision of Section 40A(3) not considered by AO - Held that:- As perused the paper book filed by the assessee wherein the questionnaire of the Assessing Officer to the assessee in course of assessment proceedings is produced at pages 36 to 38. The questionnaire does not call for any details of cash payment exceeding ₹ 20,000/-. Nor there is any question raised by the Assessing Officer calling for the details of the payments made to Baba Hardasmal Communication Pvt. Ltd., hence, the contention of the assessee before us that the Assessing Officer has taken a conscious decision not make disallowance u/s 40A(3) after examining the ledger account of Baba Hardasmal Communication Pvt. Ltd. is not correct. Since books of account of the assessee clearly show payment in excess of ₹ 20,000/- to a person on a single day, necessarily the same has to be disallowed u/s 40A(3) of the Act, unless the assessee is able to prove that it comes within the mitigating circumstances prescribed under Rule 6DD of the I.T. Rules 1962. Since assessee does not have a case that the cash payment exceeding ₹ 20,000/- is exempt by virtue of the situation enumerated in Rule 6DD of the I.T. Rules 1962, we are of the view that CIT is justified in passing revisionary order u/s 263 of the Act. - Decided against assessee.
|