Tribunal Upholds Disallowance of Cash Expenses for 2013-14 Due to Lack of Evidence on Bank Holiday Transactions.

The ITAT dismissed the appellant's writ petition concerning the non-acceptance of cash expenditure claimed for the assessment year 2013-14 under Section 40A (3A) of the Income Tax Act, 1961. The CIT(A) upheld the disallowance, citing insufficient evidence for cash payments made on a bank holiday. The Tribunal found no substantial question of law warranting intervention.

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Issues involved: Dispute regarding non-acceptance of cash expenditure claimed by the assessee for the assessment year 2013-14 under Section 40A (3A) proviso read with Rule 6DD (j) of the Income Tax Act, 1961.

The judgment pertains to the non-acceptance of a cash expenditure claimed by the assessee for the assessment year 2013-14. The assessee contended that he had to make cash payments totaling Rs. 3,47,717/- on the last day of the assessment year due to it being a Sunday and a bank holiday. The appellant claimed exemption u/s 40A (3A) proviso read with Rule 6DD (j) of the Income Tax Rules, 1962. However, the Commissioner of Income Tax (A) of Hubballi upheld the disallowance made by the Assessing Officer under Section 40A (3) of the Income Tax Act, 1961, stating that the assessee failed to provide a valid reason for making cash payments on a Sunday when banks were closed. The appellant failed to produce sufficient evidence to support his claim, and the Tribunal also found no reason to interfere with the lower authorities' orders. Consequently, the writ petition was dismissed as the appellant did not raise any substantial question of law necessitating the court's intervention.

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