TMI Blog1992 (11) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... by this court under section 256(2), has stated the case and referred the following question to this court : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the provisions of section 40A(3) read with rule 6, were applicable to the circumstances of this case particularly in view of the circular of the Central Board of Direct Taxes, dated May 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Against such disallowance, the assessee filed an appeal before the Appellate Assistant Commissioner and contended that the payments in question had to be made in cash as M/s. Meghdoot Pistons (P.) Ltd. had insisted on cash payments as some of the earlier payments made by the assessee, by cheques, were unfortunately dishonoured for want of funds. Thus, the payee did not have sufficient confiden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... directed the Income-tax Officer to allow the assessee's claim for deduction of the said payment of Rs. 2,11,800. Aggrieved by the order of the Appellate Assistant Commissioner, the Revenue filed an appeal before the Tribunal. After considering the facts, as stated above, the Tribunal observed that the assessee had placed sufficient material before the lower authorities to show that it made the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which was placed before it. It has further observed that the genuineness of the transaction was not in dispute. This being so, on the facts found by the Tribunal, the case not only fell within the provisions of rule 6DD(j), but the assessee was also entitled to claim the benefit of Circular No. 220, dated May 31, 1977, issued by the Central Board of Direct Taxes. In the said circular, it is, inte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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