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2020 (8) TMI 45 - AT - Income TaxDisallowance u/s. 40A(3) - payments made through bearer cheques/in cash to the suppliers against supply of grits - AO estimated the GP/income after rejecting books of accounts - HELD THAT:- AO while computing the income of the assessee had taken into account, the purchases made in cash and thereafter had calculated the income of the assessee. The ld. CIT(A) had reproduced the decision in the case of Banwarilal Bansidhar [1997 (5) TMI 37 - ALLAHABAD HIGH COURT] wherein the High Court has deleted the addition over and above the estimation of profit done by the Assessing Officer, as the High Court was of the opinion that the said element of purchase in cash was subsumed in the income calculated by the Assessing Officer. No distinguishable facts of the said decision with the present case, as reproduced in paragraph No. (f) of the impugned order (supra). In view of the above, we find substantial force in the grounds of appeal on this issue and the same are allowed and the disallowance made u/s. 40A(3) is deleted. - Decided in favour of assessee.
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