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2016 (5) TMI 1502

..... in the assessee’s own case for the assessment year 2009-10 [2015 (8) TMI 569 - PUNJAB & HARYANA HIGH COURT] the addition is deleted as held Tribunal has not disbelieved the transactions or the genuineness thereof. Nor has it disbelieved the fact of payments having been made. More important, the reasons furnished by the appellant for having made the cash payments, which we have already adverted to, have not been disbelieved. In our view, assuming these reasons to be correct, they clearly make out a case of business expediency. The order of the ld. CIT(A) is set aside and the grounds raised by the assessee are accepted. - ITA No.344(Asr)/2015 - 20-5-2016 - SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER For The .....

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..... Any other ground that may be taken at later stage with the permission of the Hon ble Bench. 2. Briefly stated, the facts of the case are that the assessee is engaged in the business of import/export of edible oils as well as trading in properties. The assessee filed his return showing total income at ₹ 59,21,180/-. The AO noticed that the assessee had made cash payments of ₹ 20,02,000/- for the purchase of immovable properties (held as stock-in-trade) and thus violated the provisions of section 40A(3) of the Act. The assessee explained that the sellers of the properties were stranger to the assessee and they insisted on cash payment, which was not appreciated by the A.O. In an effort to mature the deals, the assessee was compel .....

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..... at in an effort to mature the deal, the appellant was compelled to make such payments in cash, which otherwise were genuine and bonafide and stood duly corroborated by the Sub Registrar, Bathinda. It was thus insisted that the identity of the payee was disclosed and genuineness of the payment was established, thereby mitigating the rigours of the provisions of section 40A(3) of the Act under the shelter of the proviso appended to the said section. It was canvassed hat the impugned cash payment was on account of business expediency and therefore, disallowance was not warranted. In support of the said argument, the appellant brought on record many judicial precedents to the effect that if the business expediency so demands, the appellant can .....

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