2006 (1) TMI 61

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.... J. - The above tax case appeal is directed against the order of the Income-tax Appellate Tribunal in I.T.A. No. 879/Mds/2000 dated July 15, 2005, raising the following substantial questions of law: "(a) Whether, in the facts and circumstances of the case, the Tribunal was right in interpreting the provisions of section 40A(3) with regard to the word 'sum' used therein, i.e., as to whether it w....

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....ed limit under section 40A(3) of the Act and the appeal was allowed. Hence, the Revenue preferred an appeal before the Tribunal, which upheld the order of the Commissioner. Hence, the present appeal. Heard Mr. J. Narayanaswamy, learned counsel appearing for the Revenue at length. In this regard, it would be apt to refer section 40A(3) of the Act, which reads as follows: "Expenses or payme....

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....payment in respect thereof in a sum exceeding twenty thousand rupees otherwise than by a crossed cheque drawn on a bank or by a crossed bank draft, the allowance originally made shall be deemed to have been wrongly made and the Assessing Officer may recompute the total income of the assessee for the previous year in which such liability was incurred and make the necessary amendment, and the provis....

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....y Stores [1984] 146 ITR 600 wherein the question was whether the Tribunal was right in holding that section 40A(3) of the Act would apply only if each item of the expenditure involved in a single bill for several items exceeds Rs. 2,500. It is true that this court answered the said question in favour of the Revenue. But, concededly, the facts and circumstances of the said case are with referenc....