1998 (12) TMI 53

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..... in the way of the payment being allowed ?" The facts as found by the Appellate Tribunal are that the assessee made local purchases of cashew kernels. These purchases include purchase of 1,134 kgs. of cashew kernels worth Rs. 50,000 made from one Sri Rajan. The Assessing Officer discovered that the payment was made through the bearer cheque dated June 10, 1977, drawn on Federal Bank Ltd., Quilon. To test the genuineness of the payment, the Assessing Officer issued summons to Rajan, who was never produced for examination before him or before any other authority by the assessee. The cheque was honoured by the bank. The Assessing Officer, however, held that the payment was not made either by crossed cheque or by a crossed demand draft and the .....

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..... de to Rajan is covered by rule 6DD. The Appellate Tribunal in its order dated August 18, 1991, annexure-D in the paper book, observed as under : "5. The next question to be seen is whether the payment, in the circumstances of the case, would come under rule 6DD(j) of the Income-tax Rules. It is the Income-tax Officer's case that the payment is not covered by exceptions provided in the rules. In our considered view, though the payment made to a broker is not by way of an account payee cheque, inasmuch as the broker is only a conduit for other suppliers, circumstances might warrant the payment otherwise than by an account payee cheque. In such circumstances, exception is not ruled out under rule 6DD(j) of the Income-tax Rules." From the .....

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..... the broker, who was only a conduit for other suppliers. It is not elaborated by the Tribunal whether the word "supplier" used by it referred to grower or producer of the products of horticulture. Unless there is a clear finding by the Appellate Tribunal that payment was made to the growers or producers of the products of horticulture, advantage of rule 6DD(f) could not be taken. In so far as the question whether cashewnuts are the products of horticulture is concerned, we do not agree with the submission of learned senior standing counsel that cashew kernels are not the products of horticulture. In Concise Oxford Dictionary, 9th edition, the noun "horticulture" is defined as "the art of garden cultivation". The word "garden" in the same di .....

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