9911796707
TMI Blog1981 (1) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... ,849 the assessee explained that the amount paid was in respect of three purchases of coal and in respect of each purchase the payment was below Rs. 2,500 and, therefore, this amount was not covered by s. 40A(3). In respect of the other four payments it was submitted that cash was paid for buying five truck loads of coal through two Dalals, namely, Kishan Lal and Rafiq Hassan. It was submitted that cash had to be paid because the trucks arrived after banking hours and they had to be unloaded as the trucks had to go back before dawn. It was also submitted that the purchases were made on the basis of Dharam Kanta receipts which indicated weight of coal and number of the truck. The ITO did not accept the assessee s submission because the original vouchers for purchase of the coal were not produced and even the identity of the person to whom the payments were made was not established. 3. The assessee filed an appeal to the Commissioner of Income-tax (Appeals). Before him it was reiterated that the payment of Rs. 5,849 was in respect of three different purchases and no purchase exceeded Rs. 2,500. It was again submitted that payment was made through two Dalals, Krishan Lal and Rafiq H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of the authorities below. 5. We have carefully considered the rival submissions. The CIT (A) has held that the two conditions required under r. 6DD(j), firstly the genuineness of the payments and secondly the identity of the payees, had not been established. The genuineness of the four payments aggregating Rs. 17,113 cannot be doubted because firstly these payments are recorded in the books of account of the assessee against purchase of coal and it is not Revenue s case that coal was not purchased by the assessee for the purpose of its business of Janta Brick Works. The assessee had also filed copies of affidavits of the two brokers, namely, Rafiq-ul-Hasan and Kishan Chand. Rafiq-ul-Hasan had confirmed that three trucks of coal were purchased by Janta Brick Works, Badhshahpur through him and he had received Dalali at the rate of Rs. 3 per tonne. Similarly Kishan Chand had confirmed that Janta Brick Works had purchased one truck of coal valued at Rs. 3,082.25P. through him and he had received Rs. 26 as Dalali. The details have not been examined and without examining them in the presence of the assessee their averments cannot be rejected. In our opinion, the genuineness of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7-3-1974 Rs. 4,160.00P. 16-3-1974 Rs. 3,200.00P. 18-4-1974 Rs. 3,200.00P. 2-6-1974 Rs. 13,506.40P. 26-10-1974 Rs. 3,359.48P. . Rs. 35,858.68 The ITO required the assessee to explain as to why these payments should not be disallowed under s. 40A(3). In respect of the sum of Rs. 3,180.80P. the assessee s submission was that their Munim Shri S. Kumar purchased firewood by paying cash and brought it in a truck. A letter from M/s. Kumar Brothers was filed certifying that the firewood was purchased from them and they had no bank account of their own. In respect of the sum of Rs. 2,552 on23rd Jan., 1974, it was explained the "chhilka moongfali" was purchased in two trucks through Nand Lal Dalal. The trucks were stopped on the road and after bargaining the trucks were unloaded at the assessee s crusher and if the payment was not made in cash the working of the crusher would have suffered. An affidavit of Nand Lal, Dalal was also filed. In respect of the sum of Rs. 2,700 paid on 30th Jan., 1974 and Rs. 3,200 on 18th April, 1974 it was explained that these purchases were made from M/s. Ambika Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should be accepted. We thus delete the sum of Rs. 2,552. 9. The assessee had paid Rs. 13,506.40p. on2nd June, 1974to M/s. Shiv Shanker Dayal Radhey Shyam, Amroha for purchased of mobil oil. The bill for supply of mobil oil is dt.27th May, 1974. The payment is shown in the books on2nd June, 1974. M/s Shiv Shanker Dayal Radhey Shyam have filed a letter dt.26th Feb., 1978stating that at the time of negotiating the transaction they and Shri Radhey Shyam, partner of M/s. Shyam Sugar Works had specifically and mutually decided that the payment against the said bill shall be made on the expiry of one week and that the payment shall be made in cash. The goods were supplied only after the above referred mode of payment was settled. They confirmed the receipt of cash on2nd June, 1974. In this case the genuineness of the payment and the identity of the payee are established. The only point for consideration is whether there were exceptional circumstances for making the payment in cash. The contents of the letter of M/s. Shiv Shanker Dayal Radhey Shyam remind uncontroverted and as it was mutually decided between the buyer and the seller that the payment for mobil oil will be made in cash, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for tractor and Engine used for tubewell. . . Rs. 24,512.07 In this year the income shown was Rs. 64,006 against which the expenditure shown was Rs. 24,512. According to the ITO, the agricultural expenses were low as compared to the agricultural proceeds. For ascertaining probable gross income and expenditure the ITO calculated information from the District Agriculture Officer. On the basis of the information supplied by the District Agriculture Officer, the ITO made certain calculations and came to the conclusion that the net income should have been Rs. 22,652 as again Rs. 39,495. The ITO, therefore, treated the sum of Rs. 16,843 as the assessee s income from undisclosed sources. on appeal, the CIT (A) reduced the addition to Rs. 15,000. We have dealt with a similar matter in our order in ITA No. 3739 (Del)/1979 dt.15th Jan., 1981pertaining to the assessment year 1974-75 and for the reasons stated therein we delete the addition of Rs. 15,000. 12. The next ground relates to the disallowance of a sum of Rs. 500 out of rasoi expenses and another sum of Rs. 500 out of miscellaneous expenses. We are not inclined to interfere with these disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
