TaxTMI 
TaxTMI 
2023 (3) TMI 32
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.... 1. The order of Ld. CIT(A) to the extent it confirms the order of assessment is wrong, illegal and unsustainable which springs out from misappreciation of facts. 2. The Ld.CIT(A) failed to appreciate the fact that the payments made on a single day were towards separate invoices and different trips which cannot be construed as an aggregate of payments as contemplated in Sec.40A(3). 3. The Ld. CIT(A) having not disputed the fact that the cash was deposited in the bank accounts of the sub-contractors ought not to have invoked Sec.40A(3). आयकर अपीलीय अिधकरण, 'सी' !ायपीठ, चे$....
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....f the Act. The relevant findings of the AO are as under: 3. The assessee also produced vouchers for the said expenditure. The vouchers were carefully examined. It is seen that the assessee has made payments in respect of Hire Charges exceeding Rs.35,000/- on the same day. The said payments are listed in Annexure. The assessee contention that the payment is not single payment and relates to various trips is not correct. The assessee has made payments which are categorized as under (1) Payment is made under the head Lorry Hire Charges / Lorry Hire advance to persons like M/s ML.Shivali Rai, Sharmila Devi, S.L.Roadways in cash exceeding Rs.35,000/- in same day and the payments were remitted in the recipient bank account in ca....
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....e by the AO and dismissed the appeal filed by the assessee. 5. The Ld.AR for the assessee referring to various documents including bank accounts of sub-contractors submitted that the assessee has no doubt paid cash for hiring lorries from sub-contractors in excess of prescribed limit. However, such payments have been directly credited to bank accounts of sub-contractors. The AR further submitted that there is a business exigency in making cash payments, because, the sub-contractors need to pay towards loan EMIs and if assessee does not make payment in cash, there is a inconvenience. Therefore, the assessee has directly credited cash through bank account and thus, argued that payment made by the assessee are genuine in nature which are ou....
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....required to be made in cash for business exigency. The assessee has explained the reasons for making cash payment and according to the assessee, the subcontractors were in need of money under urgent circumstances, for which, the assessee has deposited cash into their bank account. We find that although the assessee tries to make out a case of business exigency, but reasons given by the assessee to make cash payment does not come under any exception as provided u/r.6DD of IT Rules. Further, genuineness or otherwise of payment is not a criteria to exclude cash payment in excess of prescribed limit from the provisions of Sec.40A(3) of the Act. In this case, there is no dispute that the assessee has made cash payments in excess of prescribed li....