2019 (11) TMI 510

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r reasons and hence the same may kindly be quashed. 2. Rs. 3,48,150/-: The ld. CIT(A) has grossly erred in law as well as on the facts of the case in confirming the disallowance of Rs. 3,48,150/- u/s 40A(3) on account of cash payment in excess of Rs. 20,000/-. Hence the addition or disallowance so made by the ld. AO and sustained by the ld. CIT(A) is being totally contrary to the provisions of law and facts on the record and hence the penalty may kindly be deleted in full. 3. The ld.AO has grossly erred in law as well as on the facts of the case in charging interest u/s 234 B/C. The appellant totally denies it liability of charging of any such interest. The interest, so charged, being contrary to the provisions of law and facts, may k....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....made and taxed the income at the MMR maximum Marginal rate. 4.1 In first appeal, the Id. CIT(A) has confirmed the disallowance in summary manner and only held that the appel lant made the income & expendi ture account and fi led the audi t report and made receipt and payment account and balance sheet which established that it is doing the business or profession and these are business payment made, hence section 40A(3) is applicable. The Id. CIT(A) has further held that the argument that the payment made on behalf of Govt. Agency is also not acceptable and the appellant has not filled any evidence regarding that the payment covered with rule 6DD. 4.2 In the aforesaid background, it was submitted that in this case provision of Sec. 40A(3)....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....working on behalf of Govt. agency or other institute and the expenses has also been incurred on their behalf. 4.4 It was further submitted that the assessee has made payments in cash under the exceptional and unavoidable circumstances. Because the payment has been made on account of expenses for breakfast, lunch dinner, paid to the various restaurant, halwai etc out of station from the office place of the assessee, where they people not accept the cheque being unknown to the assessee and being out of station. In these transaction the payment cannot be made or not possible to pay by cheque or by demand draft due to the amount cannot be ascertained before incurring expenses. And the payee has refused to accept the payment through cheque of ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Ward 2(2), Jaipur in ITA No. 1065/JP/2016 dt. 15.05.2018. 5. The ld. DR is heard who has relied on the findings of the lower authorities and submitted that even though income of the assessee has been assessed under the head income from other sources, the provisions of section 40A(3) are equally applicable by virtue of section 58 of the Act. Hence, the contention raised by the ld. AR regarding non- applicability of section 40A(3) of the Act is not correct. It was submitted that the assessee has not specified as to how the payment made by it in cash is covered under any of the exceptional and unavoidable circumstances as specified in Rule 6DD of the Income Tax Rule. He accordingly submitted that there is no infirmity in the order of the lo....