2018 (8) TMI 758

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.... (PER : HONOURABLE MR.JUSTICE M.R. SHAH) 1. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Income Tax Appellate Tribunal, "B Bench, Ahmedabad, dated 11.09.2017 in ITA No.1219/Ahd/2015 for the Assessment Year 2008-09 by which the learned Tribunal has dismissed the said appeal preferred by the Revenue and has confirmed the order passed by the Commi....

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....e of Rs. 25,400/-. The case was reported under Section 147 that the assessee purchased goods of Rs. 2,83,55,337/- wherein payments exceeding Rs. 20,000/- were made in cash to various parties. The A.O. issued notices and called upon the assesee to furnish particulars with respect to the payments made to various farmers. However, the fact remains that in the Books of Accounts, the aforesaid amount w....

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....t was made for agricultural produces, as per the aforesaid provision, it was open for the assessee to make the payment in cash above Rs. 20,000/-. Feeling aggrieved and dissatisfied with the order passed by the learned CIT(A), the Revenue preferred the appeal before the learned ITAT and by impugned judgment and order, the learned ITAT has dismissed the said appeal and has confirmed the order passe....

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....eeding Rs. 20,000/- in cash, the A.O. made the disallowance under Section 40A(3) of the Act. However, considering Rule 6DD(e)(i) of the Income Tax Rules, 1962, and when the payment was made by cash exceeding Rs. 20,000/-, it was permissible if the same was paid for purchase of agricultural produces. It is required to be noted that in the present case, in the Books of Accounts, the said payment was....