1996 (2) TMI 89

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..... d Sri B. L. Srivastava, learned counsel for the assessee. The facts of the case are that the assessee is a firm which sold papers to a mill on commission basis on behalf of Shri L. D. Laddha. In connection with these transactions, the respondent-firm paid Rs. 2,34,317 to Shri L. D. Laddha on various dates. According to the details of the payments, as contained in the books of account of the assess .....

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..... hat the payments, in no case, exceeded Rs. 2,500 at any one point of time and that, therefore, its case was not hit by section 40A(3). Hence, this reference. The Tribunal has decided the case in favour of the assessee only on the ground that if the Income-tax Officer wanted to correct the entries, he should have examined the assessee-firm as well as Shri L. D. Laddha regarding their respective b .....

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..... the discrepancy because as pointed out above, the assessee was given an opportunity to explain the payments exceeding amount Rs. 2,500. For the reasons stated above, we set aside the order dated August 31, 1977, passed by the Tribunal and remand the matter to the Tribunal for a fresh decision in the light of the observations, as made above. The assessee will be at the liberty to adduce fresh evi .....

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