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TMI Blog2014 (12) TMI 934X X X X Extracts X X X X X X X X Extracts X X X X ..... 301 ITR 276 (HP). In the said decision, it has been held that even prior to the amendment of Section 40A(3) of the Income Tax Act, 1961 (Act, for short) with effect from 1st April, 2009, effect should be given to the said provision by aggregating the total cash payments towards expenditure made to a particular person during a day. It is noticeable that the Tribunal in the impugned order has referred to judgments, which take the other view and reliance has been placed upon the decision of the Orissa High Court in Commissioner of Income Tax, Orissa versus Aloo Supply Co. (1980) 121 ITR 680 (Orissa) and the Madhya Pradesh High Court in CIT versus Treveni Prasad Pannalal (1997) 228 ITR 680 (MP). Another decision of the Allahabad High Court in K ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s Park Rangers Football and Athletic Club Ltd. [1952] 2 QB 918 (QB), it has been indicated that the word " sum " has two connotations, one being a definite amount, e.g., so many pounds and shillings, and the other one being an addition of individual amounts to create a sum. In this connection see also Kneen v. Martin [1935] 1 KB 499 ; 19 TC 33 (CA). In the A Dictionary for Accounts by Eric L. Kohler, the meaning of "sum" has been given as "an amount, as of money". While legislating, Parliament obviously tries to convey its intention through express words. It is one of the well settled rules of interpretation that where a word used in a statute carries more than one meaning, that meaning which makes the provision workable and is nearest t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant factors, it was observed, was not proved. The Himachal Pradesh High Court has specifically recorded that in the said case, transactions themselves were found to be extremely doubtful and appeared to be fraudulent. Noticeably, in terms of the amendment made to Section 40A(3) of the Act, aggregation of the total payments during the day has to be made. However, the said amendment is applicable with effect from 1st April, 2009. As per the assessment order, the respondent-assessee had filed return on 8th August, 2008, declaring income of Rs. 4,64,703/-. The Assessing Officer did not disturb the trading results declared by the respondent-assessee and has accepted the Gross Profit rate after recording that the assessee had furnished the requ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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