TMI Blog2023 (9) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... ervice Station is not an authenticated one - HELD THAT:- The substance of the judicial opinion is that the terms of section 40A(3) of the Act are not absolute and though certain circumstances are contemplated under rule 6DD of the Rules, they are not exhaustive. One such exception approved by the Hon ble Madras High Court [ 2020 (9) TMI 543 - MADRAS HIGH COURT] is the incapacity of the assessee to make the payment through banking channel due to freezing of the bank account by order of Governmental agency, in that case, the ESI department. Assessee produced the copies of such attachments issued by the Income Tax Department by way of notice dated 12/08/2013, u/s 226(3) of the Act and prohibitory order dated 25/11/2013 by the Employee Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erest and financial charges, and Rs. 2,62,06,238/- under section 40A(3) of the Act for making cash payments in excess of Rs. 20,000/- in contravention of the provisions of law. 3. In appeal, assessee produced certificates relevant under proviso to section 201(1) of the Act to the tune of Rs. 18,30,101/- and learned CIT(A) accepted the same and granted relief to that extent. Learned CIT(A), however, confirmed the addition of Rs. 2,62,06,238/- under section 40A(3) of the Act stating that no ledger account regarding such expense was produced and the certificate issued by Santosh Service Station is not an authenticated one. 4. Assessee is therefore before us in this appeal stating that subsequent to the first appellate proceedings, the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , before us, the assessee produced the relevant certificate, covering a sum of Rs. 26,84,153/-, and there is no dispute as on this aspect. We, therefore, modify the order of learned CIT(A) and direct the learned Assessing Officer to delete the amount of Rs. 26,84,153/-. In respect of the other sums, in the absence of any further evidence, we find it difficult to disturb the findings of the authorities below. 7. As far as the other addition of Rs. 2,62,06,238/- under section 40A(3) of the Act is concerned, assessee relied upon the observations of the Hon ble Apex Court in the case of Attar Singh Gurmukh Singh (supra) to the effect that the terms of section 40A(3) of the Act are not absolute; that consideration of business expediency and o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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