9911796707
TMI Blog2018 (9) TMI 1316X X X X Extracts X X X X X X X X Extracts X X X X ..... e 'Act') framed on 29.03.2014 by ITO-5(1), Indore. 2. Briefly stated facts as culled out from the records are that the assessee is an individual of sole proprietorship concern namely M/s. Satyam Agencies, Indore. Income of Rs. 4,59,640/- disclosed in the income Tax return filed on 27.09.2012 . Turnover for the year has been shown at Rs. 10.28 crores. Case selected for scrutiny through Computer Assistance Scrutiny Section (CASS) and notices u/s 143(2) and 142(1) were duly served upon the assessee along with questionnaire. The Ld. AO while examining the records observed that the assessee was having regular purchase and sale transactions from M/s. Sai Impex and during the year cash payments of Rs. 1,00,72,000/- were made. Provisions of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ues needs to be adjudicated (1) Addition of low house hold withdrawals at Rs. 1,00,000/- (2) disallowance u/s 40A(3) of the Act at Rs. 1,00,72,000/-. 5. Apropos first issue relating to low household withdrawals we have heard rival contentions and perused the records placed before us. In the audited capital account no withdrawals were shown by the assessee for household expenses and it was claimed that the household withdrawals of her husband was sufficient. Ld.A.O was not satisfied with this statement and estimated the addition of Rs. 1,50,000/- for low household withdrawal which was thereafter scaled down by Ld.CIT(A) to Rs. 1,00,000/- thereby giving relief of Rs. 50,000/- to the assessee. 6. We observe that the assessee has disclosed to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f both the lower authorities was fair enough to raise no objection if this particular issue of disallowance u/s 40A(3) of the Act is set aside to the file of Ld.AO for re-examination. 9. We have heard rival contention and perused the records placed before us. This is an undisputed fact that sum of Rs. 1,00,72,000/- has been paid in cash by the assessee to M/s. Sai Impex with whom the assessee is having regular transaction of purchase and sale of edible oil. From perusal of the ledger account of Ms/ Sai Impex from page 28 to 42 of paper book we find that there was an opening credit balance of Rs. 4,80,89,203/-. Regular purchases of soyabean have been made up till 19.1.2011. There is no transaction of sale of soyabean up to 19.1.11 thereafte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .O also need to cross verify from Ms/. Sai Implex as to whether similar transactions of cash have been shown on the very same date in their books of accounts. We accordingly set aside this issue of disallowance u/s 40A(3) of the Act to the file of Ld.AO to make necessary verification along with the application of the provision of 40A(3) of the Act on all these transactions of cash payment in the light of various judgments referred and relied by the Ld. Counsel for the assessee (placed at Page 48 to 89 of the paper book) during the course of hearing before us. Needless to mention that proper opportunity of being heard should be provided to the assessee and also direct the assessee to make due compliances to the notices of Ld.A.O. Accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X
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