TMI Blog2019 (5) TMI 1692X X X X Extracts X X X X X X X X Extracts X X X X ..... to consider the overall explanation of the assessee having regard to the business consideration. The assessee s explanation is that assessee had to make payment in business exigency as during the month of February, 2012, generally marriages takes place and during odd hours, the assessee made transactions and in some cases seller was insisting for cash payments. The payments had been made to the seller because of that reason. The genuineness of purchases had not been doubted by the AO. In this case, there is no dispute to the fact that the genuineness of the transaction and the payment and identity of the receiver are established. This view is supported by the decision of in the case of Gurdas Garg [ 2015 (8) TMI 569 - PUNJAB HARYANA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f justice. 3. For that, the learned C.I.T.(A) has committed gross error of law as well as fact in confirming the addition of ₹ 3,33,700.00 U/s.40A(3) made by the learned A.O., particularly when, the cash payments were made due to business exigency under the exceptional circumstances. Therefore, the impugned addition being not correct, needs to be deleted in the interest of justice. 4. For that, the learned C.I.T.(A) should have deleted the addition made by the learned A.O by applying section 40A(3) of the Act, particularly when the impugned addition is not sustainable in the eye of law and the provision has no application under the facts and in the circumstances of the case. 5. For that, the findings give ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 73 ₹ 17,992/- ₹ 27,992/- 71 10,000/- Do- 06.02.2012 475 17,489/- ₹ 34,978/- 448 17,489/- Do- 08.02.2012 453 17,000/- ₹ 34,000/- 455 17,000/- Do- 09.02.2012 456 15,000 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to business exigencies and under exceptional circumstances. Ld A.R. submitted that most of the payments were made in the month of February, 2012, when maximum marriages were held and, therefore, the assessee had to make urgent payments in cash on the spot. Therefore, considering the business expediency and compelling business demand, the disallowance made by the authorities below should be deleted. Ld A.R. also relied on the decision of Cuttack Bench of the Tribunal in the case of Subham Estcon Pvt Ltd vs JCIT in ITA No.183/CTK/2016 for A.Y.2011-12 order dated 12.10.2017, wherein, the Tribunal after considering the decision of Hon ble P H High Court in the case of Gurdas Garg vs CIT, 63 taxman 289 has held that where genuineness of transac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious exceptional circumstances. Therefore, Rule 6DD cannot be mechanically applied and I have to consider the overall explanation of the assessee having regard to the business consideration. The assessee s explanation is that assessee had to make payment in business exigency as during the month of February, 2012, generally marriages takes place and during odd hours, the assessee made transactions and in some cases seller was insisting for cash payments. The payments had been made to the seller because of that reason. The genuineness of purchases had not been doubted by the Assessing Officer. I find that in this case, there is no dispute to the fact that the genuineness of the transaction and the payment and identity of the receiver are est ..... X X X X Extracts X X X X X X X X Extracts X X X X
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