TaxTMI 
TaxTMI 
2018 (8) TMI 1962
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....en independently and without prejudice to one another. 1. On the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in upholding the disallowance of Rs. 31,57,523/- made by the Assessing Officer. 2. On the facts and in the circumstances of the case and in law, the learned CIT(A) has erred in maintaining the disallowance of Rs. 31,57,523/- made by the Assessing Officer u/s 40A(3) of the Income Tax Act by observing that "the addition of Rs. 31,57,523/- made by the Assessing Officer is confirmed u/s 69C of the Income Tax Act", The learned C1T(A) has failed to give any show cause notice to the assessee indicating his intention to maintain the disallowance, by resorting to provisions of....
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....ents not to be allowable in the hands of assessee on account of violation of provisions of section 40(a)(ia) of the Act. After assessment order was passed, the Commissioner initiated proceedings under section 263 of the Act. He was of the view that the order passed by Assessing Officer was both erroneous and prejudicial to the interest of Revenue as the aforesaid payments to truck owners were to be disallowed under section 40A(3) of the Act. The relevant findings of the Commissioner are at paras 2 to 4 of its order. 6. Consequent to the order passed by the Commissioner under section 263 of the Act, the Assessing Officer took up the assessment proceedings and passed order under section 143(3) r.w.s. 263 of the Act and made disallowance un....
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.... Act deals with cash payments exceeding Rs. 20,000/- in a day. The said disallowance cannot be claimed in future assessment years. In the case of Ghosh & Chakraborty Transport Vs. ITO, Ward -2(1), Asansol, reported in 34 taxmann 35 [2013], it has been held by Hon'ble Kolkata Tribunal that the addition cannot be made simultaneously on same amount by applying provisions of sec. 40A(3) as well as sec. 40(a)(ia) of the Act and had set-aside this issue to the file of AO to decide afresh after giving opportunity of being heard to the assessee. The ratio of the above cited case is squarely applicable in the case of assessee, as the Hon'ble Tribunal has not objected for applying both the sections simultaneously, but taken objection for maki....
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....owers conferred upon me by the provisions of section 263 of the I.T. Act, 1961, I am of the considered opinion that it would be fair and just, if the matter is restored back to the A.O, for reconsideration of the above issue." 10. It is not a case where the issue was set aside to the file of Assessing Officer to come to a finding with regard to payments but a clear-cut finding was given that in case no disallowance was upheld under section 40(a)(ia) of the Act which was made in the original assessment order, then the disallowance is warranted under section 40A(3) of the Act. The Commissioner has given specific directions on the issue, which are reproduced by us in the para hereinabove. The Assessing Officer was directed to examine the co....