Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (12) TMI 10 - AT - Income TaxDisallowance of payment made to third parties - assessee could not produce any evidences regarding payments made to third parties on the instruction given by the sub-contractors of the assessee - HELD THAT:- On perusal of the materials produced before us it seems that the subcontractors instructed the assessee to make payments to third parties on behalf of the sub-contractors and accordingly, the assessee issued account payee cheque in the name of such third parties. As observed by both Authorities below that the assessee failed to produce any supporting evidences in tune with the contentions made before both the Authorities below and now before this Tribunal, the Ld. AR fairly conceded that the assessee is ready to produce all the necessary evidences in support of his contentions. AR prayed to remand the issue to the file of Assessing Officer for fresh examination. DR reported no objection in remanding the issue to the file of the Assessing Officer for fresh verification. - Decided in favour of assessee for statistical purposes. Disallowance made u/s. 40A(3) - HELD THAT:- AR submitted that out of ₹ 3,75,000/-, the assessee made payment through account payee cheques for an amount of ₹ 80,000/- which is in accordance with provisions of Section 40A(3) we find no evidence in support of which filed even before us. But however, the Ld. AR prayed to remand this issue to the file of Assessing Officer for his limited verification and examination whether the amount of ₹ 80,000/- was paid in accordance with Section 40A(3) - we confirm the disallowance made in contravention of Section 40A(3) of the Act to the extent of ₹ 2,95,000/- (₹ 3,75,000/- - ₹ 80,000/-). Therefore, we direct the Assessing Officer to examine the issue to an extent of ₹ 80,000/- involved in ground - Decided partly in favour of assessee.
|