2019 (11) TMI 978

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Tax Act, 1961 (in short "the Act") in No.9544(09)/2016-17/PCIT/SLM dated 13.02.2017 and in No.9544(10)/2016-17/PCIT/SLM dated 13.02.2017 for the assessment years 2012-13 & 2013-14 respectively. I.T.A.Nos.3348 & 3349/Chny/2018 are appeals filed by the assessee against the separate order of the Commissioner of Income-tax(Appeals), Salem, in Appeal No.145/2017-18 and in Appeal No.146/2017-18 dated 20.09.2018 for the assessment years 2012-13 & 2013-14 respectively, being the orders in appeal against the consequential order passed by the Assessing Officer to the order passed u/s.263 of the Act, which is subject matter of the appeal I.T.A.Nos.1325 & 1326/Chny/2017. Cross Objection Nos.20 & 21/Chny/2019 arising Appeal Nos.3348 & 3349/Chny/2018 ar....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....payments amounting to Rs. 7,35,92,131/- as debited in P&L A/c, by way of Bearer cheques and not by way of account payee cheque as mentioned in the provisions of section 40A(3). Therefore, the above said amount is required to be disallowed u/s.40A(3). 3. Therefore, I am of the view that the assessment order is both erroneous and prejudicial to the interest of revenue. I therefore, propose to pass appropriate order thereon u/s.263 as the circumstances of the case justify. You are hereby given an opportunity to represent your case and state your objections, if any to the proposed action. 4. The case is posted for hearing on 20.02.2017 at 4.00 PM. You are requested to appear before me either in person or through Authorized rep....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....6) would not be satisfied if PAN was not obtained while making the payment. The Assessing Officer may have to verify the genuineness of the payments as claimed by the assessee and allow the same if found genuine and if allowed there the applicability of sec.40a(ia) of the I.T Act is also to be verified. It was submitted that the direction given was to verify the payments exceeding Rs. 1/- lakhs and where the provisions of section 40A(3) is not applicable and where the PAN is also not available, then provisions of section 40(a)(ia) of the Act was to be invoked in view of the provisions of section 194C(6) of the Act. Consequently, the Assessing Officer had been directed to verify the genuineness of the payments as claimed by the assessee a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ard the rival contentions and perused the material available on record. A perusal of the show cause notice as extracted clearly shows that the issue of verification as to whether the payment is made after deduction of TDS or not and as to whether the provisions of section 40(a)(ia) of the Act would apply in respect of the payments made, is not a part of the show cause notice. It is true that the assessee has discussed the provisions of rule 6DD and the applicability of Rule 6DD(k) of the Act, in his reply to the show cause notice, the provisions of rule 6DD(k) is in respect of reasons for making the payment in a manner other than as prescribed under the Act, and is not in any way connected to the applicability of Sec.40(a)(ia) of the Act or....