TMI Blog1995 (4) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... to the partner for purchase of plot. The addition has been upheld by the CIT(A). Aggrieved thereby, the assessee is in appeal before us. 3. The learned counsel for the assessee submitted that the advance of Rs. 77,264 was not made by the firm to the partner in the year of account which is apparent from plot purchase account of the partner copies of which appear at page 7-9 of compilation. He further submitted that no nexus has been established by the Assessing Officer that the interest bearing loans taken were advanced by the assessee-firm to the partner for personal purposes. He, therefore, submitted that the impugned addition is not justified at all. Alternatively, he submitted that the Revenue authorities have overlooked the provisions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reducing the disallowance to Rs. 2,000 only. He pointed out that the Revenue has also come up in appeal before the Tribunal against the relief allowed by the CIT(A). 7. We have considered the rival submissions and perused the details of miscellaneous expenses available on record. The Assessing Officer has recorded a finding that the travelling expenses are not supported by vouchers. This finding could not be controverted at any stage of the proceedings. The Revenue authorities are, therefore, justified in disallowing part of the expenditure. However, keeping in view the claim, the disallowance, as approved by the CIT(A), appears to be on the higher side. We, therefore, reduce the disallowance to Rs. 1,000 only. 8. The last grievance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 40A(3) of the Act. The Assessing Officer found that cash payments were made by the assessee firm to eight parties in contravention of the provisions of s. 40A(3). According to him, the assessee had debited the amount on two consecutive dates or two different dates and the payment in excess of Rs. 2,500 was made in cash. During the assessment proceedings the assessee could not produce the money receipt details so as to justify the payments so made on two consecutive dates. He concluded that the payment below Rs. 2,500 was made by splitting up the payments made to the traders to avoid the rigours of s. 40A(3) of the Act. He also observed that there was a wide gap in incurring the expenditure and payment thereof. He, therefore, made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank account at Shehda where normal business transactions are carried out. Whenever sellers/agent visited the appellant's place for their recovery, according to his convenience at different times on the same day out of realisation of sale proceeds of the day payment was made. Thus, under the facts and in the circumstances of the case, the appellant has not violated the provisions of s. 40A(3) of the Act r/w r. 6DD(j) and CBDT Circular No. 220, dt. 31st May, 1977. The disallowance made Rs. 56,860 stands deleted." 13. The learned Departmental Representative has submitted that the CIT(A) had admitted additional evidence in contravention of r. 46A of the IT Rules inasmuch as he admitted the certificates given by the payees without allowing an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1995) 50 ITD 426 (Pat) 15. We have considered the rival submissions. It is an admitted position that the certificates of the payees were produced for the first time before the CIT(A) and thus constitute fresh evidence. However, the genuineness of the certificates has not been doubted. The identity of the parties is also not in dispute nor the Assessing Officer has doubted the factum of payment to them. Having regard to these facts, we are of the view that no useful purpose will be served by remanding the case back to the Assessing Officer only to verify the certificates. Even if these certificates are ignored, in our opinion, no disallowance can be made unless any one payment is above Rs. 2,500. In the case of the assessee there is only o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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