9911796707
TMI Blog2018 (5) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... KURESHI) 1. This appeal is filed by the Revenue to challenge the judgment of the Income Tax Appellate Tribunal dated 14.07.2017 raising following questions for our consideration: "(i) Whether on the facts and circumstances of case and in laws, the Appellate Tribunal is justified in not deciding the primary question as to whether the assessee has violated the provisions of section 40A(3) r.w. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee had made various payments totaling to Rs. 2.08 crores (rounded off) during the relevant previous year through the mode other than account payee cheque or bank draft though each payment exceeded Rs. 20,000/per day. If the assessee would have noticed since he desire to disallow such expenditure in terms of subsection (3) of section 40A of the the Income Tax Act, 1961 ('the Act' for short) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uppress his profit. The cooked up story regarding handing over the cheques to the agent of GMCPL is nothing but a colourable device used by the assessee and his representative to save the assessee from the disallowance u/s. 40A(3) of the IT Act." 4. Eventually, the Assessing Officer disallowed the expenditure of Rs. 2.08 crores and added the same to the total income of the assessee. 5. Thus, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of Vijay Proteins Pvt. Ltd. Vs. CIT reported in 58 ITD 428 and limited the disallowance to Rs. 47.28 lakhs (rounded off). In the process, he revised the assessee's declared gross profit ratio to 5.8% from the declared gross profit ratio of 2.9% by the assessee. He noted that in the earlier year, the gross profit ratio was 5.2%. He noted that the assessee's unverifiable purchases of R ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
