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TMI Blog2014 (1) TMI 1847X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Rules. The assessee had disclosed additional income on account of violation of section 40A(3) and addition of ₹ 15 lacs has already therefore been retained in view of the statement made before the authority, we see no reason to interfere in absence of any question of law much less substantial question of law arising in these Tax Appeals. - TAX APPEAL NO. 15 of 2014 And TAX APPEAL NO. 16 of 2014 - - - Dated:- 9-1-2014 - MR. AKIL KURESHI And MS SONIA GOKANI JJ Appearance: MR KM PARIKH, ADVOCATE for the Appellant(s) No. 1 ORAL ORDER (PER : MS JUSTICE SONIA GOKANI) Aggrieved by the order of the Income Tax Appellate Tribunal dated 21.6.2013 for the assessment years 2006-07 and 2007-08, these Tax Appeals are preferr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals), it chose to seek report of the Assessing Officer and on closely examining the entire material, it concluded that payments made for the purchase of agricultural and forest produces, exemption was available. It also noted that most of the transactions were through Agricultural Produce Market Committee (APMC). On the basis of the report of the Assessing Officer at the remand stage and considering the additional evidences filed by the respondent-assesse, the CIT (Appeals) held in favors of assesse. It also noted that specific verification was made of various samples taken on random basis and no infirmity at any stage was found. Accordingly, it chose to confirm the addition to the extent of ₹ 34.91 lacs and the balance was deleted. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 15 lakhs on account of purchases made from the commission agent. In view of this statement, the addition of ₹ 15 lakhs (Rupees Fifteen lakhs) is retained. The AO is directed accordingly. Challenging such decision of the Tribunal, present Tax Appeals are preferred raising following questions of law before us: 1. Whether on the facts and circumstances and in law the ITAT was justified in not upholding the disallowance u/s 40A(3) of the Act sustained by CIT (A) without appreciating that the assesse had itself admitted during the course of survey action that its purchases were covered within the ambit of 40A(3) of the Act? 2. Whether on the facts and circumstances and in law the ITAT was justified in not upholding the disall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... such purchase is made through agent who was required to pay in cash. We notice from the material on record that at length examined the issue has been examined threadbare and considering the magnitude of the transactions of cash amount exceeding ₹ 20,000/-, both the authorities rightly observed verification was neither practicable nor was done by the Assessing Officer in each and every case. However, being satisfied that substantiating the claim, cogent evidences were relied upon by both the authorities to conclude that the purchases were made from agriculturists as also through common agents, we hold that the case of respondent was correctly held to be falling under exception provided under clause (e) and (k) of Rule 6DD of Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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