2007 (10) TMI 267 - HC - Income Tax

Whether the Tribunal is correct in deleting disallowance made under section 40A (3) holding the same to be covered by rule 6DD - Whether there was compelling reasons to make payment in cash or not is basically a question of fact - CIT as well as the Tribunal, both have concurrently found that there were no banking facilities for making the payment by way of cheque - Considering the concurrent finding, appeal of revenue is dismissed

Summary

The Gujarat High Court dismissed the appeal regarding the deletion of a disallowance under section 40A(3) of the Income-tax Act, as both the Commissioner and Tribunal found that there were no banking facilities available for making payments by cheque. The Tribunal upheld the Commissioner's decision based on exceptional circumstances under Rule 6DD(j).