TMI Blog2019 (12) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act restrict payment or aggregate of payment made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeding ₹.20,000/-. Moreover, in the case of N. Mohammed Ali v. ITO [ 2016 (1) TMI 941 - MADRAS HIGH COURT] the Hon ble Jurisdictional High Court has held that where the assessee made cash payments in excess of ₹.20,000/- for purchase of crackers, in absence of even names of agencies or agents or retailers living in villages to whom the said payments were made on a day-to-day basis, the impugned disallowance made by the authorities below u/s 40A(3) should be confirmed. We confirm the disallowance of expenses made to New Bharat Electricals Enterprises, PSK Blue Metal and New Bharat Foundation. We direct the AO to allow the payment made to Raghvendra Blue Metal of ₹.10,000/-, which is less than the monetary limit stipulated under section 40A(3). Accordingly, the ground raised by the assessee is partly allowed. - I.T.A.No.365/Chny/2016 - - - Dated:- 11-10-2019 - Shri Duvvuru RL Reddy, Judicial Member And Shri S. Jayaraman, Accountant Member For the Appellant : Shri N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... low including case law. Similar ground on identical facts was subject matter in appeal in assessee s own case for the assessment year in I.T.A. Nos. 620/Mds/2013 360/Mds/2015 vide order dated 06.11.2015, wherein, the Tribunal has observed as under: 8. We have considered the elaborate submissions made by both the parties and also perused the materials available on record. We have also gone through all the case laws cited by both the parties. We find that the provisions of Section 80IA(4) of the Act when introduced afresh by the Finance Act, 1999, the provisions under section 80IA(4A) of the Act were deleted from the Act. The deduction available for any enterprise earlier under section 80IA(4A) are also made available under Section 80IA(4) itself. Further, the very fact that the legislature mentioned the words (i) developing or (ii) operating and maintaining or (iii) developing, operating and maintaining clearly indicates that any enterprise which carried on any of these three activities would become eligible for deduction. Therefore, there is no ambiguity in the Income-Tax Act. We find that where an as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cility is transferred on or after the 1st day of April, 1999 by an enterprise which developed such infrastructure facility (hereafter referred to in this section as the transferor enterprise) to another enterprise (hereafter in this section referred to as the transferee enterprise) for the purpose of operating and maintaining the infrastructure facility on its behalf in accordance with the agreement with the Central Government, State Government, local authority or statutory body, the provisions of this section shall apply to the transferee enterprise as if it were the enterprise to which this clause applies and the deduction from profits and gains would be available to such transferee enterprise for the unexpired period during which the transferor enterprise would have been entitled to the deduction, if the transfer had not taken place. Explanation.-For the purposes of this clause, infrastructure facility means- (a) a road including toll road, a bridge or a rail system; (b) a highway project including housing or other activities being an integral part of the highway project; (c) a water supply project, wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee is a proprietorship. As we notice from the relevant statutory provision, the enterprise in the nature of proprietorship nowhere finds mention in the mandate of the legislature. Although it was emphasized from the definition of the word body in the Law Lexicon which reads as follows: Statutory definition, includes partnership, Financial Services and Markets Act, 2000 (c.8), S. 367(2) (Stroud, 6th Edn., 2000, Supplement, 2003). It also includes group of bodies, partnership of enterprise card on by one or more persons or bodies and a body which is substantially the same at or successor, to, another body, Government Resources and Accounts Act, 2000 (c.20), S. 17(7) (Stroud, 6th Edn., 2000, Supplement, 2003). The main-central or principal part [Art. 110 (2), Const.]; physical or material frame of a man or animal; gang of thieves etc. 8.1 In our opinion, the said definition being a general preposition does not help the assessee s case. It is a trite preposition of law while interpreting a statute and more so a fiscal statue, neither the judicial forum concerned can insert its own words nor it can take away any from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment proceedings, the Assessing Officer noticed that the assessee has made cash payments on a single day to the single party, i.e., M/s. New Bharat Electricals Enterprises of ₹.90,826/-, ₹. 6,78,600/- to PSK Blue Metal and ₹.10,000/- to Raghvendra Blue Metal. Moreover, the assessee has also made cash payment to New Bharath Foundations on three occasions at ₹.3,89,600 on 05.10.2011, ₹.4,15,650/- and ₹.1,95,760/- totalling to ₹.10,01,010/-. Accordingly, in view of the provisions of section 40A(3) of the Act, the Assessing Officer disallowed the same and brought to tax. On appeal, the ld. CIT(A) confirmed the disallowance made under section 40A(3) of the Act. 6.1 The assessee carried the matter in appeal before the Tribunal. 6.2 We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. The assessee is a Civil Contractor Engineer, running propriety firm in the name of New Bharat Foundation and New Bharat Electrical Enterprises engaged in the business of civil contract and real estate. The assessee is engaged in the execution of certain civil ..... 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