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TMI Blog2018 (3) TMI 728X X X X Extracts X X X X X X X X Extracts X X X X ..... assuming expenses incurred in cash in excess of Rs. 20000/- u/s 40A(3) for Rs. 444527/- is added to the income of the assessee which is untoward & liable to be deleted. " 4. The Assessee is a partnership firm. The assessee acts as Del Credre agent in supplying cement of M/s. J.K.Lakshmi Cement Limited. In the course of assessment proceedings the AO noticed that the assessee had made several cash payments in excess of Rs..20,000/-. As per the provision of section 40A(3) of the Income Tax Act, 1961 (Act) where the assessee incurs any expenditure in respect of which a payment or aggregate of payment made to a person in a day otherwise then by way of account payee cheque is in excess of rupees twenty thousand, no deduction shall be allowed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this confirmatiuon none of the paymnts in a day exceed Rs. 20,000/-. The confirmaiton filed by the assessee is admitted as an additional evidence for the purpose of adjudicating the issue involved in the appeal. The AO did not have the benefit of looking at the additioanl evidence. The addition confirmed by the CIT(A) is set aside and the issue is remanded to the AO for fresh consideration. We may also add that before the AO and CIT(A) the expenditure of Rs. 4,44,527/- was stated to be for purchase of spare parts of the truck. Now a different stand is taken by the assessee. This aspect may also be taken note of by the AO in the set aside proceedings. 8. Grounds No.3 raised by the assessee reads as follows :- "3. For that on the fact and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Anasal Land mark Township (P)Ltd (2016) 61 Taxmann.com 45 (Delhi). I am of the view that in the light of the aforesaid submissio, the additon confirmed by the CIT(A) should be set aside and the issue remanded to the AO for fresh consideration in the light of the submisisons made by the assessee before me. 11. Ground No.4 was not pressed and hence dismissed as not pressed. 12. Ground No.5 raised by the assessee reads as follows :- "5. For that on the fact and in the circumstance of the case Rs.l00000/- was disallowed of wages is liable to be deleted. " 13. The AO made an addition of Rs. 2,50,000/- by way of disallowance of wages on the following grounds :- "7.1. On verification of relevant documents produced by the Authorised Represe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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