TMI Blog2018 (4) TMI 1426X X X X Extracts X X X X X X X X Extracts X X X X ..... 1488 - GUJARAT HIGH COURT] - Decided in favour of the assessee. Disallowance equivalent to 20% of amount paid in cash to the transporters u/s 40A(3) - Held that:- We find from the facts on record that the assessee has failed to establish any exceptional or unavoidable circumstances for making payment in cash instead cross cheque. The assessee is not covered by the exception provided under rule 6DD(j) of the act. The assessee has not placed any material which shows that there were any exigencies which warranted payment by non-account payee cheques. - Decided against assessee - ITA No. 849 And CO 64/Ahd/2016 - - - Dated:- 23-3-2018 - Shri S. S. Godara, Judicial Member And Shri Amarjit Singh, Accountant Member For The Revenue : Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h September, 2008. On scrutiny, the assessing officer noticed that during the year under consideration the assessee has paid an amount of ₹ 57,46,145/- as transport charge to various persons. From the details of payments to transporters, the assessing officer has worked out payment in excess of ₹ 20,000/- or aggregate of ₹ 50,000 paid by the assessee as under:- Sr. No. Name of the Transporter Amount paid from 01. 04. 2006 to 28.02.2007 Amount paid during March, 2007 1 G. Thakorlal nil ₹ 2,16,947 2 Gurukkrupa Tansport & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed the appeal of the assessee. 6. We have heard both the sides and perused the material on record carefully. The assessee had paid an amount of ₹ 52,70,069/- to 6 transporters between the period 01.04.2006 to 28.02.2007 and had also deducted TDS on this amount, however, the TDS so deducted had been deposited to the Government account on 05.04.2007.Therefore, the AO invoked the provisions of section 40(a)(ia) of the act and held this amount as disallowable. the Hon'ble High Court of Gujarat in its decision in the case of Standard Builders 41 taxman.com 155 (Guj) has held that the amendment made by the Finance Act, 2010 w.e.f. 01.04.2010 in Section 40(a)(ia) of the IT Act is having retrospective effect, and therefore, if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of filing return of income, same is required to be given credit in very same assessment year. Therefore, the issue is now covered in favour of the assessee by the decision of the jurisdictional High Court and accordingly, we are inclined with the decision of the learned CIT appeal directing the assessing to delete the disallowance made u/s 40(a)(ia). Therefore the appeal of the revenue on this issue is dismissed. Cross Objection No. 64/Ahd/2016 8. The assessee has raised following ground in cross objection:- 1. The Ld. CIT (A) erred on facts and in law in confirming disallowance of ₹ 2,50,000/- i.e. equivalent to 20% of ₹ 12,50,000/- paid in cash to the transporters u/s 40A(3) of the Act. 7. 9. In the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees60 in the cases and circumstances specified hereunder, namely : - 61(a) where the payment is made to - ( i) the Reserve Bank of India or any banking company62 as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949); ( ii) the State Bank of India or any subsidiary bank63 as defined in section 2 of the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959); ( iii) any co-operative bank or land mortgage bank; ( iv) any primary agricultural credit society or any primary credit society as defined under section 56 of the Banking Regulation Act, 1949 (10 of 1949); ( v) the Life Insurance Corpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ins) or dairy or poultry farming; or ( iii) fish or fish products68; or ( iv) the products of horticulture or apiculture, to the cultivator, grower or producer of such articles, produce or products; ( f) where the payment is made for the purchase of the products manufactured or processed without the aid of power in a cottage industry, to the producer of such products; 69(g) where the payment is made in a village or town, which on the date of such payment is not served by any bank, to any person who ordinarily resides, or is carrying on any business, profession or vocation, in any such village or town; ( h) where any payment is made to an employee of the assessee or the heir of any such employee, on or in co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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