2017 (2) TMI 74

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....ssessee against the order of CIT(A)-Mumbai, for the assessment year 2010-2011. 2. This appeal is barred by 5 days. Considering the facts and circumstances of the case and the submission made by the assessee in its application dated 4-12-2014, for condonation of delay, I condone the delay of 5 days in filing the present appeal in the interest of substantial justice and appeal is heard on merit. ....

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....Rs. 70,52,219 (16.36%) are purchases from M/s Kalani Marketing. During the year, the assessee had paid amounts totalling to Rs. 77,88,385 and Rs. 78,15,295 to M/s Pinku Traders and M/s Kalani Marketing respectively. Out of these payments Rs. 16,04.183 (20.59% - 11 payments out of 51 payments) and Rs. 12,25,790 (15.68% - 2 payments out of 38 payments) were made in cash. The AO disallowed payment by....

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....red into by the assessee were also confirmed by the vendors 'respectively, as also by their respective AOs in the course of proceedings under section 133 (6) of the Act. Therefore, the bonafide nature of the transaction is already established by account confirmations from the respective parties. I also found that all these payments were made on Saturday and Sunday when the banks were closed. Merel....

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....te in its terms. Accordingly, where there is a genuine finding that the seller has insisted on cash payment and the payment is genuine; amount cannot be disallowed. Isn CIT vs Pravin & Co (2005) 274 ITR 534 (Guj), it was held that the practicality of the payment should be judged from the view of the businessmen and not the Assessing Officer. Various courts in the case of Girdharilal Goenka vs ClT ....