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TMI Blog2016 (4) TMI 1000X X X X Extracts X X X X X X X X Extracts X X X X ..... isdiction in the case lied with ITO-3(1), Lucknow as is evident from the fact that first notice under section 143(2), had been issued by the said Income Tax Authority. II) subsequent notices under section 143(2) dated 09.09.2011 and 27.09.2011 issued by different Income Tax Authority designated as ACIT, Range-3, Lucknow, were not valid in the absence of any order having been passed under section 127 [transferring jurisdiction from ITO 3(1) to ACIT, Range 3]; III) in consequence of (i) and (ii) above, the assessment order dated 10.01.2013 was wholly without jurisdiction." 3. Regarding this ground, various contentions were raised by the Ld. AR of the assessee but when it was pointed out that since the first notice was issued by the IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore this issue is covered in favour of the assessee by the judgment of the Hon'ble Allahabad High Court rendered in the case of CIT Vs. Avtar Singh & Sons reported in 188 ITR 669 (All.). Regarding the payment of Rs. 2.45 lakh to Godray Steel Fabricators Ltd., it was submitted that the payment was required to be made on the date which was Sunday i.e. 20.12.2009 and therefore, this payment is covered by Clause j of Rule 6DD. He also submitted that in respect of payment of Rs. 2.60 lakh to M/s Neema Steel Works, Rs. 2.60 lakh to Om Shakti Enterprises and Rs. 2.35 lakh to H.L. Brick Field also, Clause j of Rule 6DD is applicable because payment to these three parties were also made on the same date i.e. 20.12.2009 being Sunday. Regarding pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese facts, we examine the issue as per Section 40A(3) read with Rule 6DD. The proviso below sub Section 3A of Section 40A reads as under:- "Proviso to section 40A(3A) provides that no disallowance shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3) and this subsection[Section 40A(3A)] where 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, in such cases and under such circumstances as may be prescribed, having regard to the nature and extent of banking facilities available, considerations of business expediency and other relevant factors." ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim by bringing cogent evidence in support of his contentions but this is a fact that the payments in cash were made prior to the receipt of supply of goods and hence, the business expediency of making cash payment gets supported. Because unless there is business expediency to make advance payment in cash, no businessmen will make payment to a party in cash in advance and wait for the supply of receipt of goods for five to ten days. This is not the case of the Revenue that the identity of the supplier to whom the cash payment was made is in doubt and there is no doubt expressed by the Revenue regarding genuineness of the payment and the only objection of the authorities below is this that the payment was made in violation to the mode of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat only self made vouchers were available and the assessee has not maintained any register or muster Roll and only cash payments were made for these expenses. The Assessing Officer also noted that labour charges incurred by the assessee works out to Rs. 77.09% of the total receipt. Hence it is seen that the Assessing Officer has only two objections that there are only self made vouchers and that there is no register or Muster Roll. Regarding this objection that there is only self made vouchers, we are of the considered opinion that this objection is not valid because for making payment to labourers, there cannot be independent bill. Regarding non maintenance of the register or Muster Roll, it is explained by the assessee that labour were p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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