The Tax Publishers2019 TaxPub(DT) 4202 (Del-Trib)

INCOME TAX ACT, 1961

Section 40A(3)

Admittedly, AO had not cast any doubt on genuineness of impugned payments, therefore, matter was remanded for proper verification. Assessee was directed to file all details/evidences to establish job work done, and urgency to make payment in cash.

Business disallowance under section 40A(3) - Cash payments exceeding prescribed limit - Assessee pleading urgency to make payment in cash -

Assessee engaged in manufacturing supply, commissioning of wire drawing plant and machinery of various metals and their alloys made payments in cash exceeding Rs. 20,000 for job works, repairs to plant and machinery. AO invoked section 40A(3) and made disallowance. Assessee's case was that in the type of business carried out by assessee, cash payments, could not be eliminated totally.Held: Admittedly, AO had not cast any doubt on genuineness of impugned payments, therefore, matter was remanded for proper verification. Assessee was directed to file all details/evidences to establish job work done, and urgency to make payment in cash.

REFERRED :

FAVOUR : In assessees favour (by way of remand).

A.Y. : 2010-11


INCOME TAX ACT, 1961

Section 36(1)(vii)

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