TMI Blog2015 (10) TMI 1893X X X X Extracts X X X X X X X X Extracts X X X X ..... issue to the Assessing Officer to take appropriate steps such as issue of summons to M/s Someshwara Fertilizers & Chemicals for clarifying this mismatch and thereafter giving a reasonable opportunity to the assessee to decide the issue in accordance with law. - Decided in favour of assessee for statistical purposes. - ITA No.113(B)/2015 - - - Dated:- 26-8-2015 - SMT. ASHA VIJAYARAGHAVAN, JM (SMC) For The Assessee : Shri Narendra Sharma, Advocate For The Revenue : Dr. P.K.Srihari, Addl.CIT ORDER PER SMT ASHA VIJAYARAGHAVAN, JM: This appeal by the assessee is directed against the order of CIT(A), Mysore, dated 17-10-2014 for the assessment year 2008-09. 2. The issue in this appeal is regarding disallowance u/s 40A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company has also issued cash receipts. Further, it is shown that a cheque of ₹ 50,000/- was shown as received from assessee on 31-03-2008 but not cleared. Thus, the ledger extract of said company as per books of accounts maintained by assessee was totally different from ledger maintained by Sri Someshwara Fertilizers Chemicals found during the course of survey. As per ledger extract produced by assessee on each occasion cash payment made is less than ₹ 20,000/- and there is no entry regarding payment of cheque but, as per ledger obtained from company during the survey, cash payments made exceeded ₹ 20,000/-and also a cheque of ₹ 50,000/- was stated to be received by the company . It was argued by the assessee be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w. E. F.1996. The CBDT s Circular cited supra, explains the reasoning for deletion of Rule 6DD(j). With these observations the AO made the addition of ₹ 3,04,100/- by disallowing this amount u/s 40A(3) . 3. Aggrieved assessee preferred appeal before the CIT(A). 4. On appeal before the CIT(A), it was argued by the learned counsel for the assessee that the assessee had established identity of the payer and payee, genuineness of the payment and availability of cash balance in the books of accounts and also submitted that the factum of business expediency should also be considered. The CIT(A) held that what can be excluded is only that which are enumerated in Rule 6DD. Further, the CIT(A) observed that from the facts of the case, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id Rs. 21/08/2007 478600 19500 23/08/2007 414405 19500 30/08/2007 495555 13050 05/02/2007 254922 19500 06/02/2008 235422 19000 07/02/2008 222047 19000 09/08/2008 208922 19000 11/02/2008 195402 19000 12/02/2008 176402 19500 04/03/2008 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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