2009 (6) TMI 565

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....tion 260A of the Income-tax Act, 1961 (hereinafter referred to as "the Act") was admitted, vide order dated September 4, 2000 on the following substantial question of law: "(i) Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that the case of the assessee is covered under rule 6DD of the Income-tax Rules, 1962, in deleting the additions made by the Asse....

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....essee had allegedly not given any exceptional circumstances under which such payments were made in cash. 6. In addition to that the assessing authority and also added the deposits amounting to Rs. 40,500 as the income of the assessee. 7. Against the assessment order, the respondent-assessee has filed the Departmental appeal before the Commissioner of Income-tax (Appeals), Allahabad. So far a....

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....eness of the transactions nor the identity of the person/seller to whom the payments had been made. In such circumstances, if the payments are made in cash, the same shall fall within the exception provided under rule 6DD of the Income-tax Rules and such transactions could not be disallowed. 9. The present appeal arises out of the aforesaid Tribunal's order dated January, 1999. 10. We have h....

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.... section 40A(3) are not absolute. Consideration of business expediency and other relevant factors are not excluded. Genuine and bona fide transactions are not taken out of the sweep of the section. It is open to the assessee to furnish to the satisfaction of the Assessing Officer the circumstances under which the payment in the manner prescribed in section 40A(3) was not practicable or would have ....