1987 (11) TMI 399

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....ppeal by the assessee the only issue that is raised is regarding the purchases aggregating to Rs. 2,09,705 made by cash is allowable as an expenditure or not in view of the exemption provided in r. 6DD(j) and also the Board's Circular No.220 dt. 31st May, 1977. The plea of the assessee before us was that purchases that were made from M/s Kedarnath Dwarka Prasad, Alwar, M/s Jagdish Chand Prakas....

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....for the reason that such purchases and payment were made on a Sunday which was a bank holiday. The only grievance of the ITO for disallowing the payments is that the assessee could have made the payment either by draft or cheque. It was also pleaded that assessee did not have bank account and the fact of identity of the payee and the same being accounted for as income by the other person is not in....

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....ve been advanced by the parties. From the order of the authorities below admitted position is that the genuineness of the payments and identity of the payee has been accepted by the authorities below. The second fact which emerges out from orders of the authorities below is that the places at which the purchases were made was very different from the place of business of the assessee. As per the Bo....