9911796707
TMI Blog2012 (7) TMI 557X X X X Extracts X X X X X X X X Extracts X X X X ..... f condoning the conduct of the assessee - Order of Tribunal is set aside - against assessee. - TC(A). Nos. 122 of 2003 and 1430 and 1431 of 2005 - - - Dated:- 29-6-2012 - Mrs.Justice CHITRA VENKATARAMAN, Mr.Justice K.RAVICHANDRA BAABU, JJ. For Appellant : Mr.T.R.Senthil Kumar Standing Counsel For Respondent : Mr.V.S.Jayakumar COMMON JUDGMENT CHITRA VENKATARAMAN, J. The Revenue has filed the above appeals as against the order of the Income Tax Appellate Tribunal for the assessment years 1993-94 and 1995-96. The T.C.(A).No. 122 of 2003 was admitted on the following substantial question of law:- "Whether in the facts and circumstances of the case, the Tribunal was right in holding that payment of cash amountin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or consideration under Section 40A(3) of the Act and balance sum of Rs.3,80,083/- was liable to be disallowed under Section 40A(3) of the Act. The facts thus stated above related to assessment year 1993-94. Aggrieved by this, the assessee went on appeal before the Commissioner of Income Tax (Appeals), who accepted the assessee's plea that since the amount of Rs.3,26,813/- was directly paid into the account, the same was not liable to be considered as covered by Section 40A(3) for disallowance. The Commissioner of Income Tax (Appeals) also granted further relief on payment of Rs.25,000/- and odd. Thus, partly allowed the appeal. 3. Aggrieved by this, the Revenue went on appeal before the Income Tax Appellate Tribunal, who confirmed the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... levant factors. 5. A reading of the above said section would point out that whenever the assessee incurred expenditure in respect of which payment is made in cash in excess of Rs.10,000/-, the expenditure should not be allowed as a deduction. The proviso to sub section (3) of Section 10A carries out the exception that before rejecting such claim for deduction, the officer shall take into account the nature and extent of the banking facilities available, considerations of business expediency and other relevant factors. 6. Rule 6DD of the Income Tax Rules specify circumstances under which the payment for a sum exceeding Rs.10,000/- may be made otherwise than by a crossed cheque drawn on a bank or by a crossed bank draft. In fact on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t stood, there being no exceptional circumstances for remitting the amount to the credit of payee's amount, we do not find any good ground to uphold the order of the Tribunal. It may be pointed out that the deposit of the amount to the bank does not make the case any shade better than a cash payment for the purpose of condoning the conduct of the assessee. Consequently, the order of the Tribunal is set aside and the Tax Case (Appeal) No. 122 of 2003 is allowed. No costs. 10. The facts in respect of other cases are not different from what had been noted above since the questions of law raised on other Tax Case (Appeals) are identical. Accordingly, the orders of the Tribunal passed in other two Tax Case (Appeals) are set aside and we allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
