TMI Blog2024 (4) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... e been restricted to the extent of 20% in terms of extant provision of section 40A(3) of the Act. We therefore, direct the AO to restrict the disallowance to the extent of 20% of the total expenditure which was incurred in cash and exceeded the prescribed monetary limit i.e. INR 20,000/- of the same. Grounds raised by the assessee are accordingly, partly allowed. - Shri Kul Bharat, Judicial Member And Shri Pradip Kumar Kedia, Accountant Member For the Appellant : Shri Rakesh Jain, Adv. For the Respondent : Shri Anuj Garg, Sr. DR ORDER PER KUL BHARAT, JM The present appeal filed by the assessee is directed against the order passed by Ld. CIT(A), Faridabad dated 31.01.2019 for the assessment year 2007- 08. The assessee has raised following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents and also the genuineness of payment and the identity of the payee is not doubted. 5. That the appellant craves the leave to add a mend, modify, delete any of the grounds of appeal before or at the time of hearing and each ground is independent and without prejudice to each other. 2. The only effective ground raised in this appeal is against the sustaining of addition made by the Assessing Officer by invoking the provision of section 40A(3) of the Income Tax Act, 1961 ( the Act ). 3. Facts giving rise to the present appeal are that original return was completed u/s 143(3) r.w.s. 147 of the Act, computed income of the assessee at INR 31,24,090/- against the returned income of INR 28,99,960/-. Thereafter, the assessment was revised by Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or payments not deductible in certain circumstances u/s 40A(3) of the Income Tax Act, 1961 (Finance Act, 2007); 2. Hon'ble ITAT Delhi Bench C in the case of M/s Geo Connect Ltd. Vs. DCIT, New Delhi in ITA No. 2896 of 2018 vide order dated 29.08.2022; 3. Attar Singh Gurmukh Singh Etc. Vs. Income Tax Officer (1991) 191 ITR 0667 SC; 4. Anupam Tele Services Vs. Income Tax Officer (2014) 366 ITR 122 (Guj); 5. A Daga Royal Arts Vs. Income Tax Officer (2018) 53 CCH 0086 Jaipur Trib; 6. Nobel Advertisers Pvt. Ltd. Vs. DCIT (2022) 65 CCH 0002 Del Trib; 7. Ranbaxy Laboratories Ltd. Vs. CIT (2011) 336 ITR 0136 Del HC; and 8. Naresh Kumar Garg Prop. Garg Electricals Vs. ACIT (2019) 57 CCH 0363 Del Trib. 7. On the other hand, Ld. Sr. DR for the Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder:- (3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed, exceeds ten thousand rupees, no deduction shall be allowed in respect of such expenditure. (3A) Where an allowance has been made in the assessment for any year in respect of any liability incurred by the assessee for any expenditure and subsequently during any previous year (hereinafter referred to as subsequent year) the assessee makes payment in respect thereof, otherwise than by an account payee cheque ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eads as under:- 40A(3). Where the assessee incurs any expenditure in respect of which payment is made, after such date (not being later than the 31st day of March, 1969) as may be specified in this behalf by the Central Government by notification in the Official Gazette, in a sum exceeding [twenty] thousand rupees otherwise than by an account payee cheque drawn on a bank or account payee bank draft], twenty per cent of such expenditure shall not be allowed as a deduction: Provided that where an allowance has been made in the assessment for any year not being an assessment year commencing prior to the 1st day of April 1969, in respect of any liability incurred by the assessee for any expenditure and subsequently during any previous year the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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