9911796707
TMI Blog2006 (8) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... ether, on the facts and circumstances of the case, the Tribunal was correct in law in holding that provisions of section 40A(3) of the Income-tax Act, 1961, which are mandatory, cannot be invoked in a case where estimation of gross profit is made? 2. Whether, on the facts and circumstances of the case, the Tribunal was right in deciding the issue of provisions of section 40A(3), when the issue wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st 3.23 per cent. shown by the assessee on the ground that in the earlier years, a gross profit of 4.27 per cent had been applied and there was no justification for showing a lesser gross profit. The Commissioner of Income-tax (Appeals) held that there was no justification for disallowance of cash payments in excess of the limit laid down under section 40A(3) of the Income-tax Act, 1961 (in short ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ken by the Allahabad High Court in Banwari Lal's case [1998] 229 ITR 229 to the following effect: "...The question for consideration is when no deduction was sought and allowed under section 40A(3), was there any need to go into section 40A(3) and rule 6DD(j). We see force in the view taken by the Appellate Tribunal that when the income of the assessee was computed applying the gross profit rate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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