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TMI Blog2013 (11) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... owing two substantial questions of law arise : "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in holding that the circumstances contemplated by rule 6DD(j) of the Income-tax Rules, 1962, existed as far as the assessee is concerned ? 2. Whether, on the facts and in the circumstances of the case, the order of the Income-tax Appellate Tribunal is perverse in law ?" 4. The assessee is a trader located in Vijayawada. He carries on the business of purchase and sale of suit cases. Most of his supplies are received from the vendors in Hyderabad. 5. Revenue, this was in violation of section 40A(3) of the Act. In response, the contention of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, I submit that I am an uneducated person and do not know much about income-tax and sales tax rules and regulations and as such I did not maintain any bank account. As I am uneducated do not much about the income-tax rules and having no bank account, I have made all the purchases in cash only. I enclose herewith a statement showing the details of cash payments in excess of Rs. 10,000 for purchases made during the year 1994-95. Therefore, you are requested to take into consideration the above facts and not to disallow the same under section 40A(3)." 8. The Assessing Officer did not accept the explanation given by the assessee for the reason that even though the assessee may be uneducated, he had the services of a chartered accountant to lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee shows that the transaction should be at a place where either the seller of the goods or the assessee did not have a bank account. 13. It has come on record that the assessee receives his goods by lorry delivered from Hyderabad to Vijayawada. As mentioned above, the appellate authority found that the assessee has a bank account in Vijayawada. That being the position, the Circular relied upon by the assessee does not come to his aid. 14. It may be noticed that the stand taken by the assessee before the appellate authority was quite different from the stand taken before the Assessing Officer. 15. Feeling aggrieved by the view expressed by the appellate authority, the assessee preferred an appeal which was allowed by the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay note that in Late Smt. Jyothi Chellaram v. CIT [1988] 173 ITR 358 (AP), a Division Bench of this court held that there must be some evidence to corroborate the explanation furnished by the assessee. As we have noted above, the explanation submitted by the assessee both before the Assessing Officer as well as before the appellate authority were found to be false and in so far as the view expressed by the Tribunal is concerned, that was based only on material which was not on record and purely on surmises and conjectures. In our opinion, the assessee has not made out any case of exceptional or unavoidable circumstances as postulated by rule 6DD(j) of the Rules. 21. Under the circumstances, we have no doubt that the substantial questions o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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