2009 (12) TMI 30 - HC - Income Tax

Cash Payment Disallowance u/s 40A(3) - The Assessing Officer added the said payment as income by invoking the Section 145(1) of the Act. The addition was deleted in the appeal and the order of the Appellate Authority has been confirmed by the Tribunal vide order under appeal held that - The findings recorded by the Appellate Authority are essentially finding of facts. They have accepted the explanation furnished by the assessee for making cash payment - No illegality or perversity could be pointed out by the learned counsel for the department Deduction of expenditure allowed

Summary

The High Court of Allahabad dismissed the appeal against the Income Tax Appellate Tribunal's order regarding a dispute over cash payment and Section 40A(3) applicability for the assessment year 1988-89. The Tribunal upheld the Appellate Authority's decision, finding no illegality or perversity in the explanation provided by the assessee for the cash payment. The appeal was dismissed on 17.12.2009.