2002 (1) TMI 1303

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.... Per Shri T.K.Sharma, J.M.- This appeal by the assessee is direct¬ed against the order dated 8-12-1995 of CIT(A) upholding the addition of Rs. 1,37,956 out of addition of Rs. 1,52,956 made by the Assessing Officer under section 40A(3) of the Income-tax Act, 1961 pertaining to A.Y. 1989-90. 2. The brief facts are that assessee-firm derived its income from dying and printing of art silk fa....

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....t assessee deliberately made attempt to circum¬vent the provisions of section 40A(3) and he made the addition of Rs. 1,52,956. The assessee carried the matter in appeal and learned CIT(A) upheld the action of Assessing Officer to the extent of payment of Rs. 1,37,956. Aggrieved by the order of learned CIT(A), assessee is in appeal before us. 3. At the time of hearing before us on behalf of ....

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.... (6,000 + 6,000) 22-10-1988 Rs. 12,000 (6,140 + 6,000) 6-11-1988 Rs. 12,140   Rs. 1,37,956   Continuing his argument counsel of the assessee submitted that labour contractor is required to make payment to the labourers in cash. 6-11-1988 was Sunday, the bank holiday. At any rate no payment has been made exceeding Rs. 10,000 at a time. Therefore, there is no vi....

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....d that labour contractor submitted the bills in advance and the assessee could have easily made the payment through account payee cheque or bank draft. 5. After hearing both the sides, we have carefully gone through the orders of authorities below. Rival submissions were also considered. The purpose of section 40A(3), of the Act, in our opinion is not to penalise the assessee for making cash pa....