2023 (9) TMI 482

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....2,63,06,238/- made under section 40(a)(ia) and 40A(3) of the Income Tax Act, 1961 (for short "the Act") are challenged in this appeal by the assessee. Relevant facts are that the assessee, carrying on business in the name of M/s. Ganesh Travels, filed her return of income on 31/12/2014 for the assessment year 201415, declaring total income at Rs. 42,88,720/-. Learned Assessing Officer concluded the assessment by making disallowance of Rs. 63,65,549/- under section 40(a)(ia) of the Act for not affecting TDS in respect of interest and financial charges, and Rs. 2,62,06,238/- under section 40A(3) of the Act for making cash payments in excess of Rs. 20,000/- in contravention of the provisions of law. 3. In appeal, assessee produced certificate....

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....section 201(1) of the Act, the assessee is not entitled to seek deletion of the amount added under section 40(a)(ia) of the Act. Likewise, unless the assessee proves the circumstances under rule 6DD of the Income Tax Rules, 1962 (Rules), the assessee cannot claim any exception to section 40A(3) of the Act. On this premise, he justified the action of the authorities below. 6. We have gone through the record in the light of the submissions made on either side. Coming to the addition under section 40(a)(ia) of the Act, before us, the assessee produced the relevant certificate, covering a sum of Rs. 26,84,153/-, and there is no dispute as on this aspect. We, therefore, modify the order of learned CIT(A) and direct the learned Assessing Officer....