2012 (5) TMI 340

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....TA No. 755/ Chd./2009 and 789/Chd./2009 respectively. "1. Whether, on the facts and circumstances of the case, the Tribunal was justified in concurring with the order of authorities below in disallowing expenditure of Rs. 33,97,674/- u/s 40(a)(ia) by holding the appellant as liable to deduct tax u/s 194 C which amounts to expansion of provisions contained in the Income Tax Act,1961 and thus the findings being illegal and perverse to the facts and circumstances of the present case; and (ii) Whether, on the facts and circumstances of the case, the Tribunal was justified in setting aside the legal issue of disallowance u/s 40A(3) of the Income Tax Act,1961 to the file of the A.O. for fresh action and thereby directing him to go through its o....

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....ions of Section 40A(3) of the Act both in respect of amount exceeding Rs. 20,000/- paid in cash as well as in relation to payments exceeding Rs. 20,000/- made in cash as shown in the books of accounts by breaking it into smaller amounts each below Rs.20,000/-. In the order of the Assessing Officer a sample of various such payments have been given e.g. on 6.4.2004 a sum of Rs. 19,000/- is shown to have been made to one party and the total payment of Rs. 3,50,000/-made on 6.4.2004 vide 19 vouchers has also been highlighted because 18 vouchers are for a sum of Rs. 19,000/- and one voucher is for a sum of Rs. 8,000/-. Various other irregularities were noticed resulting in conclusion that exception as per Rule 6DD (f)(ii) was not available in re....