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TMI Blog2016 (5) TMI 1502X X X X Extracts X X X X X X X X Extracts X X X X ..... assuming these reasons to be correct, they clearly make out a case of business expediency. The order of the ld. CIT(A) is set aside and the grounds raised by the assessee are accepted. - ITA No.344(Asr)/2015 - - - Dated:- 20-5-2016 - SH. A.D. JAIN, JUDICIAL MEMBER AND SH. T.S. KAPOOR, ACCOUNTANT MEMBER For The Appellant : Sh. P.N.Arora, Advocate For The Respondent : Sh. Umesh Takyar, DR ORDER PER A.D. JAIN, JM: This is the assessee s appeal for the assessment year 2011-12, against the order, dated 21.04.2015, passed by the ld. CIT(A), Bathinda. The assessee has raised the following grounds of appeal: 1. That o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of import/export of edible oils as well as trading in properties. The assessee filed his return showing total income at ₹ 59,21,180/-. The AO noticed that the assessee had made cash payments of ₹ 20,02,000/- for the purchase of immovable properties (held as stock-in-trade) and thus violated the provisions of section 40A(3) of the Act. The assessee explained that the sellers of the properties were stranger to the assessee and they insisted on cash payment, which was not appreciated by the A.O. In an effort to mature the deals, the assessee was compelled to make cash payments, which were genuine and bona fide and these stood duly corroborated by the Sub-Registrar, Bathinda. It was stated that the identity of the payee was discl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were genuine and bonafide and stood duly corroborated by the Sub Registrar, Bathinda. It was thus insisted that the identity of the payee was disclosed and genuineness of the payment was established, thereby mitigating the rigours of the provisions of section 40A(3) of the Act under the shelter of the proviso appended to the said section. It was canvassed hat the impugned cash payment was on account of business expediency and therefore, disallowance was not warranted. In support of the said argument, the appellant brought on record many judicial precedents to the effect that if the business expediency so demands, the appellant can be exempted from the requirement of payment of cross cheques or draft provided the transaction is genuine and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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