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TMI Blog2018 (4) TMI 1426X X X X Extracts X X X X X X X X Extracts X X X X ..... , same is required to be given credit in very same assessment year. See case of Standard Buildcon [2014 (1) TMI 1488 - GUJARAT HIGH COURT] - Decided in favour of the assessee. Disallowance equivalent to 20% of amount paid in cash to the transporters u/s 40A(3) - Held that:- We find from the facts on record that the assessee has failed to establish any exceptional or unavoidable circumstances for making payment in cash instead cross cheque. The assessee is not covered by the exception provided under rule 6DD(j) of the act. The assessee has not placed any material which shows that there were any exigencies which warranted payment by non-account payee cheques. - Decided against assessee X X X X Extracts X X X X X X X X Extracts X X X X ..... ptember, 2008. On scrutiny, the assessing officer noticed that during the year under consideration the assessee has paid an amount of ₹ 57,46,145/- as transport charge to various persons. From the details of payments to transporters, the assessing officer has worked out payment in excess of ₹ 20,000/- or aggregate of ₹ 50,000 paid by the assessee as under:- Sr. No. Name of the Transporter Amount paid from 01. 04. 2006 to 28.02.2007 Amount paid during March, 2007 1 G. Thakorlal nil ₹ 2,16,947 2 Gurukkrupa Tansport ₹ 11,79,847 ₹ 27,440 3 Jalaram Transport ₹ 2,60,680 Nil 4 Shiv Transport ₹ 8,49,000 ₹ 2,31,609 5 V.M. Enterprise ₹ 17,02,265 Nil 6 Jay jalara ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amendment made by the Finance Act, 2010 w.e.f. 01.04.2010 in Section 40(a)(ia) of the IT Act is having retrospective effect, and therefore, if the tax deducted is deposited by the assessee before the due date of filing of the return of income, the same is required to be given credit in the very assessment year. The relevant part of the above cited decision of the jurisdictional High Court is reproduced as under:- "It is not in dispute that the TDS on various expenditure was deducted by the assessee but an amount of ₹ 30,71,212/- was credited to the government account on 06/04/2006. The Assessing Officer made the addition of ₹ 30,71,212/- in the income of the assessee for the relevant year on the ground that the same was de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . equivalent to 20% of ₹ 12,50,000/- paid in cash to the transporters u/s 40A(3) of the Act."7. 9. In the course of assessment proceedings, the assessing officer has noticed that assessee paid business expenses in excess of ₹ 20,000 otherwise than by an account pay cheque drawn on a bank or account payee bank draft. The assessee has claimed before the assessing officer that the payment had been made to the transport parties by bearing cheque as per the personal request for urgent need of the parties. The assessing officer has not accepted the explanation of the assessee and disallowed 20% of such expenses to the amount of ₹ 2,50,000/- The ld. CIT(A) has sustained the aforesaid addition by stating that the assessee had now ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Banking Regulation Act, 1949 (10 of 1949); (v) the Life Insurance Corporation of India established under section 3 of the Life Insurance Corporation Act, 1956 (31 of 1956); 64(b) where the payment is made to the Government and, under the rules framed by it, such payment is required to be made in legal tender64a; (c) where the payment is made by- (i) any letter of credit arrangements through a bank; (ii) a mail or telegraphic transfer through a bank; (iii) a book adjustment from any account in a bank to any other account in that or any other bank; (iv) a bill of exchange made payable only to a bank; (v) the use of electronic clearing system through a bank account; (vi) a credit card; (vii) a debit card. Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... retrenchment, resignation, discharge or death of such employee, on account of gratuity, retrenchment compensation or similar terminal benefit and the aggregate of such sums payable to the employee or his heir does not exceed fifty thousand rupees; (i) where the payment is made by an assessee by way of salary to his employee after deducting the income-tax from salary in accordance with the provisions of section 192 of the Act, and when such employee- (i) is temporarily posted for a continuous period of fifteen days or more in a place other than his normal place of duty or on a ship; and (ii) does not maintain any account in any bank at such place or ship; 70(j) where the payment was required to be made on a day on which the banks ..... X X X X Extracts X X X X X X X X Extracts X X X X
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