9911796707
TMI Blog2004 (5) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... 60A of the Income-tax Act, 1961 (for short "the Act"), against the order of the Income-tax Appellate Tribunal, Chandigarh Bench-A, Chandigarh (for short the "Tribunal"), dated April 24, 2002, whereby its appeal against the order of the Commissioner of Income-tax (Appeals) for the assessment year 1993-94 has been dismissed. During the course of assessment proceedings, the Assessing Officer noticed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt in time. The Assessing Officer rejected this explanation by observing that M/s. Sawan Plastics was having a number of other customers and as such it could have got the payments from some other parties. Accordingly, he made the addition of Rs. 3,55,490 to the income of the assessee on account of violation of the provisions of section 40A(3) of the Act. The assessee preferred an appeal before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 6DD(j). He pointed out that the assessee had given different explanations on different occasions and as such was not entitled to the benefit of the said rule. We are unable to accept this contention. The categorical stand of the assessee was that he had made the payments in cash on the insistence of the seller and if he had not acceded to this request, the supply of goods to it could have been t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the exceptional circumstances are to be seen from the point of view of a businessman keeping in view the exigencies of business. Still further, the Central Board of Direct Taxes itself has issued Circular No. 220, dated May 31,1977 (reported in [1977] 108 ITR (St.) 8), illustrating the circumstances in which residuary exceptions of rule 6DD(j) are attracted. One of the circumstances mentione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments in the present case are protected by the exceptions provided under rule 6DD(j) read with circular dated May 31,1977. Even otherwise there is no dispute about the genuineness of the transactions and the ratio of the decision of this court in CIT v. Avtar Singh and Sons [1992] 194 ITR 80 also supports the case of the assessee. In view of the above, we are of the view that no substantial qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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