2021 (4) TMI 845

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....Jain, Sr. D.R. ORDER PER MAHAVIR PRASAD, J.M. 1. This appeal filed by the Assessee is directed against the order of the Commissioner of Income Tax ('hereinafter called CIT(A)') order no. CAB/4-20/2016-17 order dated 24/06/2017 arising out of assessment order dated 23/03/2016. Assessee has taken following grounds of appeal: 1. The Ld. CIT (A) has grossly erred in law and on facts ....

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.... 2. Facts of the case are that assesse is a Private Company and derives income from manufacturing of transformers tanks. 3. During the course of assessment proceedings, while going through submission made by the assesse, it came to notice, the ld. A.O. that assesse has made various payments to a person in a day more than 20,000/- otherwise than by an account payee cheque drawn on a bank or acco....

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....anchal 2,00,000- 16 07/02/2013 Mahesh Jadhav 23,040-     Total 11,55,540- 4. And Ld. A.O. held that assesse has violated the provisions of section 40A(3) by making these payments otherwise than account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees to a person in a day and made addition of Rs. 11,55,540/-. 5. Agai....

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..../- was made through cash payment or bearer cheque to the payer. 7. The assessee's contention is that when payments were made on next day, there was holidays of continuous four days and those payments were made for the business expediencies and assesse was compel to make cash payment under peculiar circumstances as principal company to which asessee was a distributor, and recipient of the cash p....