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2017 (6) TMI 1037 - AT - Income TaxRevision u/s 263 - cash payments u/s 40A(3) addition - Held that:- There is no merit in the findings of the CIT, for the reason that during the assessment proceedings, the A.O. has verified cash payments with reference to books of accounts and bank statement filed by the assessee and disallowed certain cash payments u/s 40A(3). CIT failed to point out specific defects in the books of accounts and did not make out even a prima facie case of any prejudice caused to the interest of the revenue. The CIT, merely on suspicious grounds directed the A.O. to disallow certain payments on the pretext of banking transaction tax debited by the bank in the statement. On perusal of the bank statement filed by the assessee, we find that on the date mentioned by the CIT in his order, there is no cash payments or bearer/cash cheques payments towards purchase of land. Therefore,the assessment order passed by the A.O. is neither erroneous nor prejudicial to the interest of the revenue. Hence, we set aside the order passed by the CIT, u/s 263 and restore the assessment order passed by the A.O. u/s 143(3) of the Act. - Decided in favour of assessee.
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