2021 (6) TMI 451

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....of Rs. 1,92,190/-. During the assessment proceedings u/s. 143(3) of the Act pursuant to selection of assessee's return of income for scrutiny under CASS, the Assessing Officer called for various details and the assessee filed all the relevant details. From the books of account of the assessee, the Assessing Officer found that the assessee has made certain cash payments towards purchase of goods amounting to Rs. 11,78,000/- from Walmart India (P) Ltd. The assessee was therefore, asked as to why the said expenditure incurred in cash towards purchase of goods worth Rs. 11,78,000/- should not to be disallowed under the provisions of section 40A(3) of the I.T. Act. The assessee submitted its reply on 25.11.2015. However, the submissions of t....

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....ng and rates alter on daily basis, 3 to 4 days for cheque/DD clearance will be too long a period and by then, the business opportunity will be lost. Therefore, the assessee had no option but to buy the goods by making the payments either by credit cards or through cash or net. It was submitted that the assessee has purchased the goods in bulk and made payments partly through credit card of he Partner Sri Kamlesh R Gandhi and the balance payment was made in cash due to compulsion. It was also submitted that the assessee has made total purchases of Rs. 24,35,960/- for which the assessee has paid Rs. 12,57,160/- by way of a mode other than cash and Rs. 11.78 lakhs was paid in cash. It is also submitted that all these cash purchases/payments we....