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TMI Blog2017 (2) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... e same have been reproduced by the learned AO in his order. The transactions entered into by the assessee were also confirmed by the vendors ‘respectively, as also by their respective AOs in the course of proceedings under section 133 (6) of the Act. Therefore, the bonafide nature of the transaction is already established by account confirmations from the respective parties. I also found that all these payments were made on Saturday and Sunday when the banks were closed. Merely because entry in the books were shown in the next date, fact of payment having been made on Saturday and Sunday when the banks remain closed, cannot be denied. The Allahabad High Court in the case of CIT vs Raja Pal Automobiles (2009 (6) TMI 565 - ALLAHABAD HIGH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ). 4. Rival contentions have been heard and record perused. The assessee is a retail dealer in wines conducting his business in Virar for over 2 decades. Assessee s business model involves selling wines and alcoholic beverages across the counter and realize payment thereof in cash from the customer. The products in turn are purchased from wholesale vendors to whom payment is made invariably by cheque, but on rare occasions by cash. During the previous year relevant to the subject assessment year, the assessee had made total purchases of ₹ 4,30,87,568/-. Out of these purchases, an amount of ₹ 1,01,56,156 (23.57%) are purchases from M/s Pinku Traders and an amount of ₹ 70,52,219 (16.36%) are purchases from M/s Kalani Mark ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de on Saturday and Sunday when the banks were closed. Merely because entry in the books were shown in the next date, fact of payment having been made on Saturday and Sunday when the banks remain closed, cannot be denied. The Allahabad High Court in the case of CIT vs Raja Pal Automobiles (2010) 320 ITR 185, had held that in case the nature of business, which indicates that it cannot be done solely by crossed cheque or bank draft and the payment is proven from bills and cash memos, exceptional circumstances could be inferred, when it could be entertained under the Rules, where it is genuine and the payee is identified. Various courts in the case of err vs Chaudhary Co (1996) 217 ITR 431 (All); George Sons vs. ACIT (2006) 286 ITR 389 (Ker ..... X X X X Extracts X X X X X X X X Extracts X X X X
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