Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (11) TMI 210 - MADRAS HIGH COURT

2016 (11) TMI 210 - MADRAS HIGH COURT - TMI - Addition u/s 40A(3) - Held that:- There is no dispute that the provisions of s.40A(3) apply to block assessments in general. The provision however, would apply only where expenditure in question has been incurred and claimed in the computation of income. The Supreme Court, in the case of Attar Singh Gurmukh Singh Vs. Income Tax Officer, Ludhiana (1991 (8) TMI 5 - SUPREME Court) reiterates this position as well. In the present case, the Tribunal confi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ken into consideration, one could assume that certain expenditure has been incurred and claimed. We are not persuaded to accept this submission in so far as there is no necessity to consider any other valuation except that relating to the subject disallowance, being ₹ 500 per gram adopted by the Assessing officer after due consideration and application of mind. We are thus of the view that the provisions of 40A(3) are wholly inapplicable to the facts and circumstances of this case. The sub .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ial Question of Law has been admitted for consideration:- Whether the Tribunal is correct in confirming the order(s) of the Lower Authorities in invoking Section 40A(3) of the Act to make the disallowance which resulted in assessment of 'undisclosed income' in spite of the purchases were assessed on an estimated basis in the said block assessment order? 2. The brief facts relevant for deciding the substantial question of law are as follows: The Appellant was engaged in the business of ma .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

to tax the value of the unaccounted purchases/investment as representing his unexplained income. To arrive at the quantum thereof, the Appellant suggested that the peak of the purchases of gold jewellery be adopted at a rate of ₹ 478 per gram. The Appellant thus offered to tax an amount of ₹ 14,34,300/- as unexplained investment representing the purchase of gold jewels of 3000 gms, as reflected in loose sheet No.30 which indicated a purchase of 2980.390 gms, at the rate of ₹ 47 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

d the provisions of 40A(3) of the Act in terms of which an assessee who incurs and claims expenditure exceeding an amount of ₹ 20,000/- was liable to have paid the same only by way of a crossed cheque drawn on a Bank or a crossed Bank Draft, failing which 20% thereof would stand disallowed. The objections of the Appellant in this regard were rejected and a disallowance in terms of s.40A(3) effected on the entire purchases of 40118.179 grams of gold at the rate of ₹ 500/- per gram. An .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version