TMI Blog1995 (9) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act, 1961. The following question has been referred to us at the instance of the applicant : " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was legally justified in holding that the payments made to Santlal Jain, Daulat Ram Makhan Lal and to M. M. Istiaq Ahmad Sultan Ahmad were covered by rule 6DD(j) of the Income-tax Rules, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t made by crossed cheque or draft. The assessee's appeal to the Assistant Commissioner was rejected by him but in the second appeal, the Tribunal has reversed the order of the Assistant Commissioner and held that the amounts were deductible. A perusal of the Tribunal's appellate order shows that Sant Lal Jain and M. M. Istiaq Ahmad Sultan Ahmad had filed certificates before the Income-tax Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces indicates that the view taken by the Tribunal is not incorrect. The considerations taken into account by the Tribunal were : 1. The statement of the assessee that his seller has been insisting on cash payment ; 2. The identity of the seller had been disclosed by the assessee ; 3. The assessee had furnished certificates from the sellers stating that they had insisted on cash payment ; 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the payee. " As has already been observed above, in the present case the totality of circumstances shows that the transactions were genuine for the reasons already mentioned above. In fact, the amount said to have been paid in cash by the assessee to certain parties has been verified by the certificates of those parties. Hence, the interest of the Department is protected because the Departme ..... X X X X Extracts X X X X X X X X Extracts X X X X
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