2025 (2) TMI 1139

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.... AY 2009-10. 2. Shri Soumitra Choudhury, Advocate and Shri Pranabesh Sarkar, Advocate appeared on behalf of the assessee and Shri Ashwani Kr. Singal, JCIT appeared on behalf of the revenue. 3. It was submitted by the Ld. AR that this is a second round of litigation. It was a submission that two issues are involved - one is a disallowance made in respect of the payments made to the suppliers of material in the assessee's contract business by applying the provisions of section 40A(3) of the Act to an extent of Rs. 52,61,916/-. The second issue was against the action of the Ld. CIT(A) in confirming the disallowance made by invoking the provisions of section 40(a)(ia) in respect of the non-deduction of TDS on the payment made to the Mangla Pl....

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....he assessee. It was the argument of the Ld. AR in respect of the disallowance u/s. 40A(3) that the payments have been made by bearer cheques to various individuals for supply of material and the necessary certificates from the Mukhias of the relevant Gram Panchayat had also been produced before the Assessing Officer in the course of the original proceedings itself wherein it has been categorically admitted that there is no branch of any bank in the village where the suppliers were operating. Copy of one of the certificates issued reads as follows: 6. It was a submission that in view of the provisions of Rule 6DDJ as there was no bank account in the relevant village, the provisions of section 40A(3) of the Act could not be applied on the li....