1981 (2) TMI 31

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y this reference under s. 256(1) of the I.T. Act, 1961 (hereinafter referred to as " the Act "), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in confirming the disallowance of Rs. 16,400, paid in cash to Shri Santos....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....account of Shri Santosh Kumar, he was, paid various amounts in cash exceeding Rs. 2,500 and such cash payments were to the extent of Rs. 16,400 out of the total amount of Rs. 30,482. Since the assessee failed to establish that the various payments in cash exceeding Rs. 2,500 to Shri Santosh Kumar were made in exceptional and unavoidable circumstances, the ITO invoked the provisions of s. 40A(3) of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or of law in upholding the disallowance of the said amount by the ITO. The learned counsel for the assessee placed reliance upon r. 6DD(e) of the I.T. Rules, 1962, and contended that the Tribunal committed an error of law in upholding the disallowance of the said amount. The contention of the learned counsel for the assessee has no force. Rule 6DD(e) of the I.T. Rules is as follows: 6DD. Cas....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....learned counsel for the assessee are not applicable to the present case. In view of the finding of the Tribunal that payments in cash exceeding Rs. 2,500 to the extent of Rs. 16,400 were made by the assessee and the assessee failed to prove that the said payments in cash were made in exceptional or unavoidable circumstances, the Tribunal had not committed any error of law in confirming the disallo....