TMI Blog1981 (2) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... ter referred to as " the Act "), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in confirming the disallowance of Rs. 16,400, paid in cash to Shri Santosh Kumar, under section 40A(3) of the Incometax Act, 1961 ? " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash exceeding Rs. 2,500 and such cash payments were to the extent of Rs. 16,400 out of the total amount of Rs. 30,482. Since the assessee failed to establish that the various payments in cash exceeding Rs. 2,500 to Shri Santosh Kumar were made in exceptional and unavoidable circumstances, the ITO invoked the provisions of s. 40A(3) of the Act and disallowed the said cash payment totalling Rs. 16,4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ITO. The learned counsel for the assessee placed reliance upon r. 6DD(e) of the I.T. Rules, 1962, and contended that the Tribunal committed an error of law in upholding the disallowance of the said amount. The contention of the learned counsel for the assessee has no force. Rule 6DD(e) of the I.T. Rules is as follows: 6DD. Cases and circumstances in which payment in a sum exceeding two tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt case. In view of the finding of the Tribunal that payments in cash exceeding Rs. 2,500 to the extent of Rs. 16,400 were made by the assessee and the assessee failed to prove that the said payments in cash were made in exceptional or unavoidable circumstances, the Tribunal had not committed any error of law in confirming the disallowance of the said amount of Rs. 16,400 paid in cash by the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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