TMI Blog2016 (12) TMI 449X X X X Extracts X X X X X X X X Extracts X X X X ..... (2014 (2) TMI 30 - GUJARAT HIGH COURT ). But in the said case payments effected by the concerned assessee to a party which had issued a circular instructing the assessee to deposit cash. The recipient company had also instructed assessee not to make payments by cheque or demand draft. Thus, there were certain peculiar circumstances which called for relaxing the rigours of Sec. 40A(3) of the Act. On the other hand, in the case before us, there was no record to show that concerned transport operators had insisted an cash payments. If the assessee had paid money to the lorry drivers, as argued by it, vouchers would have been given by the lorry drivers and not by the transport companies. Considering clause (k) of Rule 6DD, rule of exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tween the months of October to January. The suppliers arranged for the Lorry with an undertaking that the purchaser has to pay the Lorry Freight, to the different Lorry Owners through their Drivers, since they are in far away places. They are all not known to us, who insist cash payments, immediately after unloading. It is customary and for the sake of business expediency and under extraordinary circumstances we have to pay the Lorry freight by cash but all the payments are on proper vouchers, lorry receipts, purchase invoices and with complete address of the recipient. The truck operators are also assessed to income tax, which are duly reflected/printed on the lorry receipts . Assessing Officer was of the opinion that truck ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horised Representative was that such payments in cash was under extra ordinary circumstances. As per ld. Authorised Representative all the payments were genuine and never doubted by the Revenue. Relying on the judgment of Gujarat High Court in the case of Anupam Tele Services vs. ITO (2014) 366 ITR 122, ld. Authorised Representative submitted that payments in cash when made as a practical step would not attract Sec. 40A(3) of the Act. Further, according to him, exceptional conditions in Rule 6DD was not exhaustive and Rule had to be interpreted liberally. 5. Per contra, ld. Departmental Representative strongly supported the orders of the authorities below. 6. We have considered the rival contentions and perused the orders of the lower ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8367/03.11.2010 45,500/ 6 Shree Meenakshi Transport Co., G- 45A, Transport Nagar, NH NO.06, JALGAON - 425003 Maharastra State PAN. ACZPN9621M Service Tax - ACZPN9621 M S1/001 LR 12890,12891/15.11.2010 Truck No. TN30AC4163 47,000/- 7 Shree Meenakshi Transport Co., G- 45A, Transport Nagar, NH NO.06, JALGAON - 425003 Maharastra State PAN. ACZPN9621 M Service Tax - ACZPN9621M S1/001 LR 11074,11075/21.11.2010 Truck No. TN30R6759 47,000/- 8. Shree Meenakshi Transport Co., G- 45A, Transport Nagar, NH NO.06, JALGAON - 425003 Mahar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 1195 36,000/- 14. Maheswari Goods Transport Bommakal By Pass Road Rajiv Rahadari Karian Nagar, Andhra Pradesh PAN. AKXPP2805P ST - 35,500/- 15. Shree Meenakshi Transport Co. G- 45A, Transport Nagar, NH NO.06, JALGAON - 425003 Maharastra State PAN. ACZPN9621M Service Tax - ACZPN9621 M S1/001 LR - 13039, 13040 Truck No. 54,000/- 16. Shree Meenakshi Transport Co. G- 45A, Transport Nagar, NH NO.06, JALGAON - 425003 Maharastra State PAN. ACZPN9621 M Service Tax - ACZPN9621 M S1/001 LR - 13535, 13536 Truck No - TN 52 848 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee to a party which had issued a circular instructing the assessee to deposit cash. The recipient company had also instructed assessee not to make payments by cheque or demand draft. Thus, there were certain peculiar circumstances which called for relaxing the rigours of Sec. 40A(3) of the Act. On the other hand, in the case before us, there was no record to show that concerned transport operators had insisted an cash payments. If the assessee had paid money to the lorry drivers, as argued by it, vouchers would have been given by the lorry drivers and not by the transport companies. Coming to the argument of the ld. Authorised Representative that payments were effected to an agent and hence section 40A(3) of the Act was not attracted. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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