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| The Tax Publishers2020 TaxPub(DT) 5368 (Pune-Trib) INCOME TAX ACT, 1961
Section 40A (3)
Since assessee had undertaken to produce the cash book and other evidence to support and substantiate the case on the issue of disallowance under section 40A(3), it was fair and proper and in the interest of justice to remit the matter to the file of AO for deciding the same afresh after verifying the explanation of the assessee from the relevant record.
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Business disallowance under section 40A(3) - Cash payments exceeding prescribed limit - Applicability of provisions -
Assessee was engaged in construction business. During the course of assessment proceedings, AO noticed from the verification of bank statements of the assessee that certain payments were made in cash exceeding Rs. 20,000. Therefore, section 40A(3) was invoked and disallowance was made of the payments made in cash exceeding the limit of Rs. 20,000. Held: Since assessee had undertaken to produce the cash book and other evidence to support and substantiate the case of assessee on this issue, it was fair and proper and in the interest of justice to set aside the impugned order and remit the matter to the file of AO for deciding the same afresh after verifying the explanation of the assessee from the relevant record including especially the cash book and other evidences which the assessee was directed to produce.
REFERRED :
FAVOUR : Matter remanded
A.Y. :
INCOME TAX ACT 1961
Section 37(1)
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