TMI Blog2018 (8) TMI 758X X X X Extracts X X X X X X X X Extracts X X X X ..... siness as a Commission Agent for purchase/ sale of food-grain / agricultural produces and is also holding licence issued by the Agricultural Produce Market Committee. In the present case, Rule 6DD(e)(i) shall be applicable and the same is rightly applied by the learned CIT(A) as well as the learned ITAT. It cannot be disputed and it is not disputed that as such, the assessee was engaged in the business of Commission Agent for purchase /sale of food-grain and is also holding licence issued by the Agricultural Produce Market Committee. No substantial question of law arises. - Decided against the revenue. - R/TAX APPEAL NO. 725 of 2018 - - - Dated:- 2-7-2018 - MR. M.R. SHAH AND MR. A.Y. KOGJE, JJ. For The Petitioner : Mrs Mauna M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties. The A.O. issued notices and called upon the assesee to furnish particulars with respect to the payments made to various farmers. However, the fact remains that in the Books of Accounts, the aforesaid amount was shown to be paid to various farmers and even the receipts were also produced. However, the assessee could not furnish / produce those persons / farmers and the assessee explained that it could not produce furnish the names and addresses of the persons to whom cash payment was made because farmers are known by village name they come from and it is difficult and rather impossible to track them now. The A.O. did not accept the said explanation. However, the A.O., without rejecting the Books of Accounts, made disallowance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- in cash, the A.O. made the disallowance under Section 40A(3) of the Act. However, considering Rule 6DD(e)(i) of the Income Tax Rules, 1962, and when the payment was made by cash exceeding ₹ 20,000/-, it was permissible if the same was paid for purchase of agricultural produces. It is required to be noted that in the present case, in the Books of Accounts, the said payment was shown to be paid to various farmers and even the receipts were also produced but the assessee could not produce the farmers/ list of farmers for which a reasonable explanation was also given. However, without rejecting the Books of Accounts, the learned A.O. made the addition under Section 40A(3) of the Act which is rightly deleted by the CIT(A) and rightly co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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