TMI Blog2023 (5) TMI 997X X X X Extracts X X X X X X X X Extracts X X X X ..... 1991 (8) TMI 5 - SUPREME COURT] has no application to the facts of the present case for the reason that the assessee has not produced any evidence for the purchase in cash mode with third party or furnished any satisfactory explanation either before the AO or before the CIT(A) or even before the Tribunal and thus, the Assessing Officer has rightly invoked the provisions of section 40A(3) of the Act in the present case. Decided against assessee. - I.T.A. No. 435/Chny/2021 - - - Dated:- 26-4-2023 - SHRI V. DURGA RAO, JUDICIAL MEMBER AND DR. MANISH BORAD, ACCOUNTANT MEMBER For the Appellant : Shri I. Dinesh. Advocate For the Respondent : Shri P. Sajit Kumar, JCIT ORDER PER V. DURGA RAO, JUDICIAL MEMBER: This ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has submitted that the intention of the Legislature is to curb black money and non-genuine transaction, whereas, in the present case, the Assessing Officer was able to identify the payee as well as payer and the transaction is genuine since the payment was made for the purpose of business. It was further submission that the payments made by the assessee was for business expediency and therefore, the provisions of section 40A(3) of the Act invoked by the Assessing Officer was not correct and prayed for deleting the addition made under section 40A(3) of the Act. The ld. Counsel for the assessee has relied on the following case law: 1. Attar Singh Gurmukh Singh v. ITO [1991] 59 Taxman 11(SC) 2. Smt. Harshila Chordia v. ITO [20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngly, the assessee was required to explain about the details of the above stated document, for which he had filed a reply on 12.12.2018. Upon analysing the reply of the assessee, the Assessing Officer has observed that the assessee had filed few ledger account copies and explanations, however, there had been no corresponding evidences along with vouchers, details of sundry creditors with confirmation and sources for cash introduced were produced by the assessee. The assessee s partner had himself admitted that the books were not properly maintained by the firm. 6. The Assessing Officer further observed that the transaction with Sakthi Murugan Crushers, Dindigul, vide seized document Ann/RB/KPC/L.C/S-2 dated 10.05.2018, there had been a b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payment to the third party and also stated to have claimed it back on subsequent days. The transaction was accepted to be a payment towards an outstanding bill, in cash mode, though for stated conditions and other circumstances there had been no other evidence. Even otherwise the cash payment made was booked only for the corresponding services availed which attracts provisions of section 40A(3) of the Act and accordingly, the sum of ₹.10,00,000/- was disallowed and brought to tax. On appeal, since the assessee has not brought on record any evidence that the cash payment of ₹.10,00,000/- falls under one of the categories of situations as enumerated in Rule 6DD of Income Tax Rules, 1962 and not demonstrated that the impugned expe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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