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TMI Blog2015 (9) TMI 1522X X X X Extracts X X X X X X X X Extracts X X X X ..... is is an appeal filed by the assessee against the order of ld. CIT(A)'s- Muzaffarnagar dated 31.08.2012 for A.Y. 2009-10 The revised grounds filed by the assessee on 13/05/2013 are read as under: 1. "That the order is against law & facts on record. 2. That ld. CIT(A) was wrong in not allowing payments of Rs. 20,86,795.00 u/s 40A(3) although payments were not exceeding Rs. 20,000.00 in a day. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he person to whom the payment was made nor provide any reason for making payments below Rs. 20,000/- was furnished by the assessee. It has been further held by the AO that the assessee had deliberately shown the transactions below Rs. 20,000/- to avoid rigors of section 40A(3) of the Act. Therefore, the AO rejected the books of account by invoking provisions of section 145 of the Act. The Ld A.O a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee is in appeal before us. 5. We have gone through the orders of the authorities below; the judgments relied upon by both the parties; the compilation of judgments filed by the Assessee and the arguments of both the sides. 6. It is observed that the ld.A.O rejected the assessee's books of accounts under the proviso to section 145 of the Act but had not computed the assessee's income by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wrongly made the disallowance u/s.40A(3) of the Act. In our considered view, no disallowance could have been made under the provisions of section 40A(3) read with rule 6DD(j) as the books of accounts were rejected by the AO, therefore, there was no question of considering the entries in these books of accounts. In our opinion when the gross profit rate is to be applied, that would take care of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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