9911796707
TMI Blog2014 (7) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... he same is above Rs. 20,000/-. 2. That the AO was wrong in applying the provisions of Section 40A(3) to the truck transport charges payments as the same are not covered by this section." 2. The facts of the case in brief are that the assessee is an individual, deriving income from trading of match boxes and biris. Return declaring income of Rs. 2,35,200/- was filed on 8.9.2009. During the course of assessment proceedings, from the examination of the accounts, it was gathered by the Assessing Officer that assessee had made payment of Rs. 4,30,579/- under the head "freight and cartage" on different dates to the transporters. Out of which the amount aggregating to Rs. 4,12,579/- was paid in contravention of provisions of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 20,000/- to a single person on a single date. On the other hand it has been contended that each payment made to the transporter is a single payment' which does not exceed Rs. 20,000/- and as such, provision of section 40A(3) is not applicable. To decide the impugned issue let us go through the relevant provisions of the Act. Section 40A(3) of the Act says - " .... Where the assessee incurs any expenditure in respect of which a payment or. aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure ..... " &n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he extent of Rs. 1,43,449/- were covered under any clause of Rule 6DD of the I.T. Rules, 1962. In light of the above facts it is held that the AO was justified to make addition to the extent of Rs. 1,43,449/- u/s. 40A(3) of the Act and the same is hereby confirmed. The appellant has himself admitted that Rs. 22,990/- paid on 12.5.2008 as freight in cash violated the provisions of section 40A(3) of the Act. Thus total disallowance u/s. 40A(3) amounting to Rs. 1,66,439/- (Rs. 1,43,449 + Rs. 2,46,140/-) is directed to be deleted. Grounds of appeal nos. 1 to 3 are partly allowed." 4. Still aggrieved assessee has come up in further appeal and while reiterating the submissions as made before the Ld. CIT(A), it was pleaded for deletion of the ent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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