TMI Blog2021 (3) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... e appellate proceedings is also not specified in both the Revenue Authorities orders. The submissions of the Ld. AR that the cash payments were made on Sunday s which is a non-banking day but the assessee from the records has not shown as to what was the necessity to make payment on Sundays. Revenue Authorities as well as the assessee has not clearly stated their respective cases u/s 40A(3) read with Rule 6DD(J), it will be appropriate to remand back this matter to the file of the AO for allowing the assessee to establish as to why the payments were made on Sundays and why the applicability of Section 40A(3) does not arise in assessee s case when land shown in non current investment in the audited financial statements which is not claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act ignoring the fact that the payment made in cash on 'Sunday' which is exempt under Rule 6DD of the Income Tax Rules, 1962. 4 That on the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals)-25, Delhi has erred in confirming the disallowance of ₹ 20,00,000/- despite the facts that these payments having been made out of business expediency as the appellant is engaged in Real Estate Business. 5 That on the facts and in the circumstances of the case and in law, the Ld. Commissioner of Income Tax (Appeals)-25, Delhi has erred in confirming the disallowance of ₹ 20,00,000/- despite the fact that there being no doubt as to the genuineness of transactions as such no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the disallowance of ₹ 10 lacs made by the assessee on account of cash payments made against the purchase of land at Bhiwadi, Rajisthan, invoking the provisions of Section 40A(3) of the Act ignoring the fact that the payment made in cash on Sunday which is exempt under Rule 6DD of the Income Tax Rules, 1962. The Ld. AR further submitted that the CIT(A) erred in confirming the disallowance of ₹ 20 lacs despite the fact that these payments having been made out of business expediency as the assessee is engaged in real estate business. The Ld. AR further submitted that there was no doubt created by the Assessing Officer as to the genuineness of the transaction. Therefore, no disallowance should have been made in the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Rule 6DD(J), it will be appropriate to remand back this matter to the file of the Assessing Office for allowing the assessee to establish as to why the payments were made on Sundays and why the applicability of Section40A(3) does not arise in assessee s case when land shown in non current investment in the audited financial statements which is not claimed as expenditure in P L account. Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Thus, the appeal of the assessee is partly allowed for statistical purpose. 8. In result, the appeal of the assessee is partly allowed for statistical purpose. Order pronounced in the Open Court on this 21st day of JANUARY, 2021. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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