2014 (1) TMI 643

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.... Accountant Member:- This is an appeal filed by the Assessee against the order dated 01.03.2012 passed by the ld. CIT(A)-II, Agra for the Assessment Year 2008-09. 2. The assessee has raised the following grounds of appeal :- "1. Because the learned authorities below have erred on facts and in law in disallowing a sum of Rs.4,76,000/- under section 40A(3) without appreciating the position ....

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....ing the assessment proceedings, the A.O. noticed that the bricks were purchased from M/s. Krishna Int Udyog, Firozabad. The A.O. noticed that cash payment of Rs.2,52,000/- was paid. Similarly, the assessee has shown purchase of cement in cash exceeding Rs.20,000/- for Rs.2,24,000/-. 4. The CIT(A) confirmed the order of the A.O. 5. We have heard the ld. Representatives of the parties and reco....

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....esentative submitted that before the amendment w.e.f. A.Y. 2009-10 section 40A(3) is not applicable if each payment is made of less than Rs.20,000/-. The amendment in section 40A(3) was made by the Finance Act, 2008 w.e.f. 2009-10. The ld. Authorised Representative has also referred a C.B.D.T. Circular No.1/2009 dated 27.03.2009 explanatory notes to the provisions of the Finance Act 2008. In the c....

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....of Hon'ble Madras High Court in the case of CIT vs. Kothari Sanitation & Tiles (P). Ltd., 282 ITR 117 (Mad.) wherein it has been held that the words used are "in a sum" i.e. single sum, therefore, irrespective of any number of transactions where the amount does not exceed the amount in each transaction, section 40A(3) will not apply. We respectfully follow the above judgement of Hon'ble Madhya Pra....