9911796707
TMI Blog2023 (7) TMI 991X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act, 1961 (hereinafter called 'the Act') was set aside by the ld. Commissioner of Income Tax (CIT) vide order dated 18.03.2013 on account of alleged omission on the part of the Assessing Officer to examine the issue of payments made in violation of provisions of Section 40A(3) of the Act. In the consequential assessment order, the Assessing Officer made a disallowance of Rs. 3,46,050/- on account of payments made against purchase of cement on the ground that the assessee had made all the payments below Rs. 20,000/- in cash with an aim to avoid the liability of deducting tax at source. 3. Aggrieved, the assessee preferred an appeal before the ld. First Appellate Authority, challenging the disallowance made in the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be decided without obtaining report from the Assessing Officer. The ld. Senior D.R. also placed reliance on the findings and observations of the Assessing Officer and underlined the reason behind initiating revisionary proceedings in this case i.e. violation of provisions of Section 40A(3) of the Act. 7. We have heard the rival submissions and have also perused the material on record. At this juncture, it will be appropriate to reproduce the relevant portion from the assessment order which deals with the issue at hand. The same is being reproduced hereinunder: "From the verification of Cement Account it is noticed that the assessee has made payment to various parties in excess of Rs. 20,000/. However, from the examination of Bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 19/11/2010 Total Income is computed as under: Income assessed vide order dated 19/11/2010. Rs. 456,620/- Add: Disallowance of Expenses discussed (Rs. 376,410/- minus 30,360/-) Rs. 346,050/- Total Income:- Rs. 802,670/- 7.1 A perusal of the above extracted paragraph shows that the reason recorded by the Assessing Officer for invoking the provisions of Section 40A(3) of the Act is that the assessee had made payments to various parties from whom cement had been purchased in cash more than once. However, it is undisputed and also verifiable from the assessment order itself that all payments in cash were below Rs. 20,000/-. The Assessing Officer has also noted that the assessee could not explain the reason why payments bel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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