TMI Blog2013 (1) TMI 888X X X X Extracts X X X X X X X X Extracts X X X X ..... nses to the tune of ` 6,88,366/- ignoring the fact that they were weekly payments made at the shooting site at remote places which were squarely exempted under rule 6DD of the Income Tax Rules. On the facts and circumstances of the case, the learned Commissioner (Appeals) ought to have directed the Assessing Officer to allow the cash expenses of ` 6,88,366/- erroneously disallowed u/s 40A(3) of the Act, considering exemption under rule 6DD oaf the Income Tax Rules. 3. Brief facts are that the assessee is a firm and is in the business of film distribution and production of television serials. The assessee had filed a return of income for the assessment year under consideration by admitting total income of ` 41,43,170/-. The return filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the assessee is in the production of TV serial. For that purpose the team went to far off places where there were no bank facilities available and the artists and technicians insisted for payment on the spot and in cash. He also filed statements which showed the payment made to various persons like technicians for two days, music director for one day, hotel bills, vehicle hire charges, technicians bata, artists remuneration, advance paid to the parties etc. He further submitted that as per section 40A(3A) proviso is an exception to sec. 40A(3) of the Act. Therefore, his case is covered by the proviso. 6. The learned DR, on the other hand, submitted that admittedly the expenses made by the assessee is more than ` 20,000/- and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be the profits and gains of business or profession and accordingly chargeable to income-tax as income of the subsequent year if the payment or aggregate of payments made to a person in a day, exceeds twenty thousand rupees: Provided 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 sub-section 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 busines ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
