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TMI Blog1976 (9) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... r under. S. 40 A(3) in the assessment year 1974-75. 2. The assessee is a registered firm. The relevant assessment year is 1974-75 corresponding to the accounting year ending on Diwali, 1973. The assessee firm has been carrying on the business of manufacturing of aluminium utensils. The assessee purchased goods worth Rs. 2,743.60 and Rs. 2743.80 on. and 22nd October, 73 respectively. Since the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresentative vehemently submitted that under rule 6DD (j) three conditions have to be fulfilled before the amount could be allowed as a deduction. Since the assessee s case does not fall within the exceptions provided therein, the assessee s is not entitled to the deduction. 5. The assessee s representative, on the other hand, submitted that the Income-tax Officer has not appreciated the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tty hawkers. This business is not carried on, on an organised scale and the purchases cannot, therefore, be made from established dealers. The assessee per force has to purchase the goods form the hawkers, who do not have any account books, cash memos or any other banking facilities. The assessee has, therefore, to make the payment in cash. Moreover, this was the first year of business and the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot practicable or would have caused genuine difficulties to the payee having regarding to the nature of the transaction and the necessity for expeditious settlement thereof, and also furnishes evidence to the satisfaction of the Income-tax Officers as to the genuineness of the payment and the identity of the payee." From the above it can be seen that a person who has to deal with mostly illitera ..... X X X X Extracts X X X X X X X X Extracts X X X X
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