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TMI Blog2016 (3) TMI 1301X X X X Extracts X X X X X X X X Extracts X X X X ..... s order dated 29.12.2011. 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the action of AO in making disallowance of truck loading wages charges paid in cash in excess of Rs. 20,000/- in each of the case in violation of provision of section 40(A)(3) of the Act. For this, assessee has raised following six grounds: "1. For that the Id. CIT(A), VI , erred in confirming the addition of Rs. 10824239.00 on account of Truck loading wages paid during the year without considering the facts apprised in course of hearing of the appeal. 2. For that the Id CIT(A) failed to consider in proper perspective that the payments were made in exceptional circumstances and hence the provisions u/s 40A(3) of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the assessee has incurred expenses in the nature of payment of various wages under the different heads amounting to Rs. 11,75,45,466/- and the same is appearing in Schedule 11 forming part of P&L Account under the head 'production & other wages charges'. The assessee before the AO explained the nature of each expenses including the truck loading wages expenses vide letter dated 13.10.2011. Further, explanation was also submitted vide letter dated 05.12.2011 wherein it was submitted that the payment was made to persons for disbursement of wages amongst the labours who executed the truck loading job at different points. During the course of assessment proceedings complete books of account including bills and vouchers were produced and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oceeding the ledger copy as well as vouchers, being the evidence of payment were produced and verified by AO. It is also a fact that from all the entries recorded in the ledger, it describes the mode of payment, nature of payment, rate and quantity. The narrations are almost identical and supported by vouchers to the group leader. It seems that the AO has treated the entire amount of payment to a single person. Whereas the facts remain that the payment has been collected by the group leader on behalf of all the labour deployed to undertake the job. The group leader use to distribute the amount of wages earned by each labour during the week. Copies of the ledger as well as few vouchers were produced before AO and before CIT(A) also. 5. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort Syndicate in ITA No. 282 of 2008 has held as under: "It also appears that the purchases have been held to be genuine by the learned CIT (Appeal) but the learned CIT(Appeal) has invoked Section 40A(3) for payment exceeding Rs. 20,000/- since it is not made by crossed cheque or bank draft but by hearer cheques and has computed the payments falling under provisions to Section 40A(3) for Rs. 78,45,580/- and disallowed @ 20% thereon Rs. 15,69,116/-. It is also made clear that without the payment being made by bearer cheque these goods could not have been procured and it would have hampered the supply of goods within the stipulated time. Therefore, the genuineness of the purchase has been accepted by the ld. CIT (Appeal) which has also not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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