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TMI Blog2014 (2) TMI 650X X X X Extracts X X X X X X X X Extracts X X X X ..... fter giving due opportunity to the assessee, to explain the nature of payments and why provisions of Rule 6DD apply to each of the cash payments – Decided in favour of Assessee. - ITA No. 1123/Hyd/2012 - - - Dated:- 10-2-2014 - Shri B. Ramakotaiah And Smt. Asha Vijayaraghavan,JJ. For the Appellant : Shri Samuel Nagadesi For the Respondent : Shri Shri Solgy Jose T. Kottaram DR ORDER Per B. Ramakotaiah, Accountant Member: This is an assessee's appeal against the order of the Commissioner of Income-tax(Appeals) VI, Hyderabad dated 15.5.2012. 2. Assessee raised five grounds on the issue of disallowances made under S.37, S.40A(3) and S.40(a)(ia) of the Income-tax Act, 1961. 3. Briefly stated, assessee is a firm, engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso reconciled the differences the work in progress. The CIT(A) rejected all the grounds, except the addition with reference to work-in-progress. 5. Assessee is aggrieved and hence proceed the present appeal before the Tribunal. 6. Before us, the learned counsel, explaining the nature of work undertaken and also the arguments taken before the learned CIT(A), submitted that the assessee was in a position to produce the bills for the addition made under S.37(1) of Rs.25,57,897, on the ground of non-genuine expenditure. He further explained the circumstances, under which the payments were made, but the same were not considered by the learned Assessing Officer and the CIT(A). Even though he tried to analyse the provisions of S.40A(3), its s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 40(a)(ia) for the tractor hire charges as they are not paid under a transport contract and the tractor is not a transport vehicle but an agricultural implement. (v) Overall the cash payments made at the site where the contracts are executed falls under clause (g) of the Rule 6DD and the place where the payments are made neither the payer nor recipient has access to banking facilities and the site is neither a village nor a town having served by a bank. (vi) Mere service of a village or town by a bank is not just sufficient, and the payer and payee shall be persons ordinarily residing in such village or town. The contract site is neither such place. ........." 9. It was the submission that all these aspects require detailed examinat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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