2026 (6) TMI 294

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.... Revenue : Shri Balusamy. N, JCIT-DR ORDER PER SOUNDARARAJAN K., JUDICIAL MEMBER This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 08/05/2025 in respect of the A.Y. 2016-17. 2. The brief facts of the case are that the assessee is an individual and filed his return of income on 17/10/2016. The assessee is extracting and trading in granite blocks. The....

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....he additions. The Ld.CIT(A) had not considered the ledger copies filed, to show that there is no excess payment and therefore there is no violation of section 40A(3) of the Act. The Ld.CIT(A), without discussing the issue in detail, had confirmed the additions. 4. As against the said order, the present appeal has been filed by the assessee, with a delay of 7 days. The assessee also filed an app....

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....y error in the books of accounts and also without rejecting the books of accounts, profit margin cannot be estimated. The Ld.AR also furnished the bank accounts details, copies of ITR and the ledger extracts of expenses which were all filed before the Ld.CIT(A) and prayed to allow the appeal. 7. The Ld.DR relied on the orders of the lower authorities and prayed to dismiss the appeal. 8. We h....

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....y the assessee, the ledger extracts would indicate that there are no payment exceeding the limit prescribed u/s. 40A(3) of the Act. Even though all the details were furnished by the assessee, the Ld.CIT(A) had not dealt with the said documents. In such circumstances, the order of the lower authorities by disallowing the expenses u/s. 40A(3) of the Act could not be sustained. 10. In respect of t....