2020 (1) TMI 131

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....e-tax Act, 1961 (Hereinafter referred as "the Act") in accordance with prayer of the appellant and for which said assessment order is liable to be quashed. 2. That, the learned CIT(A) has committed serious error in conforming an amount of Rs. 2,00,000/- u/s 40(a)(ia) of the Act ignoring the submission and the provisions of the Act and for which same is liable to be deleted. 3. That, the learned CIT(A) has committed serious error in conforming the disallowances u/s 40A(3) of the Act of Rs. 4,24,045/- which is liable to be deleted. 4. That, the learned CIT(A) has committed serious error in not deleting the addition made by the learned Assessing Officer of Rs. 25,00,000/- which is contrary to the facts, law and for w....

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....om pages 72 to 107, containing cash book of the assessee for the period 1.4.2007 to 31.3.2008, and submitted that from the above, it is clearly discernible that payments to Shri K.C.Swain has been made in small amounts which are less than Rs. 20,000/- in a day. Therefore, the provisions of section 40(a)(ia) of the Act cannot be applied. Ld counsel submitted that these payments are machine hire charges, which were not made in a single day and, therefore, provisions of section 40(a)(ia) are also not applicable. 5. Replying to above, ld DR submitted that prior to 1.10.2009, the assessee has made payment of Rs. 2 lakhs in a year to Shri K.C.Swain, which is exceeding Rs. 50,000/- and, therefore, TDS provision has to be applied. 6. Ld couns....

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....paid to different persons for certain purchases and expenses under compelling circumstances to the sub-contractors, who does not have bank account and for getting the work with them, the assessee has made cash payment. Therefore, ld counsel for the assessee submitted that some payment has been made to the truck owners, who denied to have accepted cheque or draft by stating that they are required to purchase fuel in cash and to the labourers during odd hours because it is difficult to withdraw the amount from bank during that odd hours. Therefore, this kind of payment made under compelling circumstances may kindly be allowed. 9. Replying to above, ld D.R. strongly supported the action of the Assessing Officer and submitted that any paymen....

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....30,000/-. From the list, it is clearly discernible that some payments have been made to the sub-contractor, truck owners and some amount has been deposited to the bank for making further payment. From the page 6 of the CIT(A) order, it is discernible that payments of Rs. 4,24,045/- were paid in cash to different persons for certain purchases and expenses which as per the AO clearly violated the provisions of section 40A(3) of the Act. In the present case, the contention of the assessee is that the said payments were paid to truck owners and sub-contractors during the odd hours for meeting the urgent and business necessity, as the payments were required to be paid to the labourers. We also note that the assessee was doing the business in the....

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....to the assessee. Hence, the amount has been received through the banking channel of the brother of the assessee as his brother could withdraw the amount at the work place of the assessee being supervising the work. He submitted that Mr Kiran K Mallvarrap is an income tax assessee with PAN No.AGBPK 7459 G and residing at Bangalore, Karnataka. Since he was residing in a far place, it was not possible on the part of the assessee to produce him before the AO. However, Mr Kiran Mallavarap has submitted his bank statement evidencing the payment of unsecured loan to Debkamal Dutta, brother of the assessee and the said loan was repaid by the assessee through RTGC which is evident from the customer foil of bank and also from the bank statement. ....

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.... was not able to come to Orissa due to his illness but submitted his bank statement and other details to prove that the transactions have been done. The Jurisdictional Assessing Officer of Bengaluru was also required to examine and report the matter within 20 days of receipt of the assessee but the Jurisdictional AO did not examine and send the report. But this fault of AO cannot be attributed to assessee alleging his failure in discharging the onus to establish genuineness of transaction and identity and creditworthiness of unsecured creditor. When the assessee submits plausible explanation corroborated with all possible documentary evidence under his control and command in the form of PAN No., Bank statement and confirmation then it ha....