TMI Blog2021 (7) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... f drawings made from bank accounts and therefore exigency in making the such payment in cash cannot be suspected. In the present facts of the case the reason for making the payments in cash to certain vendors by the assessee has not been found to be incorrect by any of the authorities below. There is no iota of evidence that is brought on record which could cast doubt on the reason for which the payment has been made in cash by assessee. Further it is also not the case of Ld. AO that, the transaction entered into between assessee and the Vendors towards purchase of the land is bogus. Admittedly payments made by the assessee by cheque has been accepted by the Ld. AO. As decided in M.K. Agrotech Pvt. Ltd [ 2019 (1) TMI 37 - KARNATAKA HI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e I.T. Rules, under the facts and in the circumstances of the appellant's case. 3. The learned CIT[A] further failed to appreciate that the appellant had made the cash payments for purchase of lands at the insistence of the Vendors who were all agriculturist and some of whom did not even have bank accounts and thus, these payments made by the appellant were under exceptional circumstances that exempted the application of the provisions of section 40A[3] of the Act under the facts and in the circumstances of the appellant's. 4. The learned CIT[A] ought to have appreciated that the provisions of section 40A[3] of the Act, were not applicable to the facts of the appellant's case and ought to have been deleted the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ghter Yoga International Foundation, and not in the name of the vendors. 2.2. The Ld. AO called upon assessee to explain why the cash payment and checked payment made in the name of Laughter Yoga Foundation should not be disallowed. In response the assessee submitted that, it acted as agents of Society for acquisition of land and the amounts paid by the society were used to defray the expenses in connection with the purchase of land and ultimately the profit that is derived by assessee is nothing but commission for agency. The assessee submitted that instead of reflecting the income alone, they resorted to show the gross receipts and expenses relating to the project in the profit and loss account. 2.3. The Ld. AO after going through t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egistered and stamp duty has been paid as per the market value. 3.4. He submitted that in the paper book at page 10-81 the agreements pertaining to purchase of the land from the relevant parties are placed along with the Ledger account wherein the payment paid to various vendors are mentioned as per the books of account of assessee. The Ld. Counsel submitted that, few owners are minors and has been represented by the legal guardians. It is submitted that at the instance of the vendors, who did not have any bank accounts, the payment were made in cash. He also submitted that such cash payments has not been denied by assessee and has been duly recorded in the books of account. He further submitted that it is not the case of the revenue tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. Sr. DR, we note that the reason for which the cash payments were made therein by the assessee was found to be incorrect. In the present facts of the case the reason for making the payments in cash to certain vendors by the assessee has not been found to be incorrect by any of the authorities below. There is no iota of evidence that is brought on record which could cast doubt on the reason for which the payment has been made in cash by assessee. Further it is also not the case of Ld. AO that, the transaction entered into between assessee and the Vendors towards purchase of the land is bogus. Admittedly payments made by the assessee by cheque has been accepted by the Ld. AO. 5.5. The Ld. counsel relied on the decision of Hon'b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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