2007 (2) TMI 93

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..... allowed u/s 40A(3) of ITA, 1961 – Held that AO was not correct and allowed assessee claimed
JUDGMENT The judgment of the court was delivered by 1 RAJESH BINDAL J.--The Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, "the Tribunal"), has referred under section 256(1) of the Income-tax Act, 1961, the following question of law which emerges from its order dated August 22, .....

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..... appeal the assessee succeeded in persuading the Commissioner of Income (Appeals) (for short "the CIT to accept its explanation furnished. The order of the Commissioner of Income-tax (Appeals) was upheld by the Tribunal in further appeal by the Revenue. 3 We have heard Mr. Yogesh Putney, learned counsel for the Revenue, a with his assistance have perused the paper book. 4 Mr. Putney has vehementl .....

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..... d that the amount was paid after banking hours because coal had been in very short supply those days. It was under such special circumstances that the assessee had to make payment in cash. The genuineness of the transactions was not in dispute. Referring to rule 6DD of the Income-tax Rules, 1962, which relaxes the rigours of section 40A(3) of the Act. the Tribunal accepted the explanation submitte .....

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