2010 (4) TMI 1214

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ppellant. Sri A. Shankar And Sri M.Lava, Advocate For The Respondent. JUDGMENT Nagarathna, The Revenue has filed this appeal by challenging the order. dated 14.03.2005 passed in ITA No. 773/Bang/2003 raising the following question oflaw. i) Whether the Tribunal was Correct in holding that for the violation committed by the Assessee of making payment beyond Rs. 10,000/- in cash....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....sessment year 1993-94 filed its return of declaring a loss. The return was taken up for scrutiny assessment and the Assessing Officer found that payment of Rs. 7,00,036/- by way of cash under the heading Lorry Hire Account was in violation of Section 40A(3) of the Income Tax Act and accordingly disallowed the same as expenditure by not accepting the explanation offered by the Assessee under Rule 6....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ucting its business and cash payments being made to an extent of Rs. 7,OO,036/- is in violation of section 40A(3) of the Act and not coming within the scope of Rule 6DD of the Rules. 5. At the outset we note that the nature of business of the Assessee is transport business and fleet operations for which the Assessee have engaged several drivers, cleaners and other employees for conducting its t....