TMI Blog1994 (3) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A). The Assessing Officer in the course of the assessment proceedings came across the following payments having been made in violation of provisions of s. 40A(3): Date Amount Account debited 13.4.84. Rs. 3,250 Repairs Renewals 2.7.84 10,000 Mr. Nem Singh 14.11.84 3,000 Mr. Than Singh 11.12.84 2,600 Mr.Than Singh 10.01.85 2,540 Carriage Inward 10.01.85 3,819 Carriage Inward 9.02.85 3,473 Cartage Account . 28,682 . 3. On the ground that the assessee had failed to give any "satisfactory explanation" for making the aforesaid payments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yee to his legal heir is allowable if paid in cash. Moreover, the legal heirs of the labourers are illiterate and they do not have any bank account and they insisted for cash payment. (iii) The appellant paid Rs. 3,000 and Rs. 2,600 to one Mr. Than Singh another labourer as wages for the repair and maintenance work undertaken by him in the factory during two different periods and the payments are also separately of Rs. 3,000 and Rs. 2,600. Since in this case also the payee was not having any bank account he insisted for cash payment and the same has been made. (iv) The Appellant has paid Rs. 2,540 to a Thelewala for carrying the material from one factory of the appellant-company to the other factory back. Since this person is also illit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC) 251 : (1991) 191 ITR 667 (SC). 7. We have examined the rival submissions and have also perused the material on record, to which our attention was invited by the parties. The decisions cited at the bar have also been duly considered. In our opinion, no disallowance is required to be made within the meaning of s. 40A(3) either on facts or in accordance with the provisions of law. As stated by the learned counsel, party No. 1, namely, Shri Hukam Singh to whom a sum of Rs. 3,250 has been paid in cash for repair of a generator is not known to the assessee and he refused to accept payment in a mode other than cash. Similarly the remaining parties viz. from 2 to 7 are those who, it is stated, do not have a bank account and accordingly they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer and confirmed by the CIT(A). 8. The only other ground which remains for our consideration is the one pertaining to the disallowance of the claim for investment allowance of a computer. The assessing officer rejected the claim for deduction in a sum of Rs. 13,750 on the ground that computer was an "office appliance" having been installed in the office of the assessee-company. On further appeal the CIT(A) confirmed the action of the Assessing Officer although it was contended before him that the computer was not installed in the office premises, but in the factory premises. According to the learned CIT(A) the assessee had not been able to justify as to how the computer was utilised in the factory and the existence of the offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omputers requires re-examination at the hands of the Assessing Officer vis-a-vis the place at which the same is installed and the role that it plays in the manufacturing process. The Assessing Officer has recorded a finding of fact to the effect that the computer is installed in the office premises whereas the CIT(A) refers to the office being located in the factory premises. On a specific query from the Bench the learned counsel high-lighted the fact that the office of the assessee-company was situated atDelhiwhereas the factory was situated atGhaziabad. For purposes of ascertaining the correct facts and applying the law thereof we set aside the order passed by the CIT(A) vis-a-vis the issue under consideration and restore the matter back ..... X X X X Extracts X X X X X X X X Extracts X X X X
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