TMI Blog1982 (1) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... stions have been referred to this court by the Tribunal under s. 256(1) of the I.T. Act, 1961 (for short called " the Act ") : " (1) Whether there was any material before the Tribunal to confirm the addition of Rs. 6,000 which had been sustained by the Appellate Assistant Commissioner out of the cash credit of Rs. 12,000 in the account of Hem Raj as the assessee's income from undisclosed sources ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laim of the assessee was that the amount of Rs. 12,000 entered in the name of Hans Raj in the account books was advanced by way of interest-free loan by the latter. The ITO rejected this plea and added the whole of this amount as income from undisclosed sources while competing the taxable income of the assessee. On appeal, the addition was reduced to Rs. 6,000 which was upheld by the Tribunal. I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6,000 ordered by the AAC. The question is accordingly answered in the affirmative, against the assessee. The amount of Rs. 28,231, the subject-matter of question No. (3), was disallowed because of the violation of the provisions of s. 40A(3) of the Act as it had not been paid through crossed cheque drawn on a bank or by crossed bank draft. The assessee, however, took shelter behind r. 6DD of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed cheque drawn on a bank or crossed bank draft and need not have waited till the demand was made for payment. There was, therefore, no such exceptional or unavoidable circumstance which could justify non-compliance with the provisions of sub-s. (3) of s. 40A of the Act and as such the Tribunal rightly maintained the disallowance of Rs. 28,231 in computing the taxable income of the assessee. Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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