9911796707
TMI Blog2019 (11) TMI 136X X X X Extracts X X X X X X X X Extracts X X X X ..... brief, are that the assessee is a company engaged in the business of tour and travels and related activities in India and out of India. It filed its return of income on 27.09.2015 declaring total income of Rs. 8,03,260/-. During the course of assessment proceedings the Assessing Officer observed from the details filed by the assessee that the assessee has made following cash payments exceeding Rs. 20,000/- details of which are as under :- S. No. Particulars Amount 1. Hotel booking of Rs. 22,378/- paid by Shri Sudhir through cash on behalf of assessee on 11.09.2014 and same was received by him from the assessee (Ledger A/c of M/s. Kempinski Ambience Hotel). 22,338/- 2. Goa Marriage expenses Rs. 7,58,407/- out of which cash payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant company with respect to certain payments submitted that these were made to directors as reimbursement for making expenses on behalf of the company. Further with respect to other payments, the appellant company submitted that the same were made at the evening when the banks were closed and are made over the weekend when the banks were closed and hence are covered within the ambit of Rule 6DD. 6.4 I have considered the ledger accounts submitted by the appellant with respect to submission of the appellant that certain expenses are reimbursement made to directors and hence are covered within Rule 6DD(k) of the Rules. I have considered the ledger but the same does not suggest that the cash was paid to directors for reimbursement. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 40A(3). In this regard, reliance is placed on the decision of the Hon'ble Jurisdictional High Court in the case of Jhunjun Wala & Co. v. CIT [2008] 167 Taxman 58 (Delhi), wherein Hon'ble Court held that where assessee had not been able to show that there were some exceptional reasons for it to make payment in cash, Tribunal was justified in upholding disallowance of said expenditure by invoking provisions of section 40A(3). The Hon'ble High Court held as under: "..4. A bare reading of the above provision shows that not only is the genuineness of payment and the identity of the payee required to be established, but the assessee must also show that the payment was made in cash due to exceptional or unavoidable circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of his own pocket later on he was reimbursed the payment. The same information was given to learned Assessing Officer on dated 29.11.2017. The same is allowed as per Rule- 6 D D ( K ) . The ledger is attached on page no. 15. - Payment of Rs. 76,000 was made in cash to book the package Hotel with food. These expenses are made in Non-Banking hours in the late evening. The ledge is attached on page no. 16. 7. Cash payment of Rs. 50,000 was made on 18.07.2014 against Hotel advance booking (Marquis Hotel Limited). These expenses are made in Non-Banking hours in the late evening. The ledger is attached on page no. 17. 8. Payment of Rs. 10,00,000 to Hotel Lalit Gold & Spa Resorts, Goa on dated 31.01.2015(Saturday). The cash payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iven small cash to incur day to day expenses and once the expenses are totally incurred, the payment is recorded at one go to avoid very small petty expenses. Hence the payment is not incurred in a single day in excess of Rs. 20,000 and should not be disallowed. The ledger is attached on page no. 21. 12. Rent payment of Rs. 25,000 on dated 05.11.2017:- Your Honor, the payment of Rent includes too Rent payments of Rs. 15,000 and Rs. 10,000. 8. Referring to the decision of the Cuttack Bench of the Tribunal in the case of M/s. Laxmi Narayan Jewellery Vs. ITO vide ITA No.250/CTK/2018 order dated 13.05.2019, he submitted that under identical circumstances the Tribunal has deleted the addition made u/s. 40 A(3) of the IT Act. 9. The Ld. D ..... X X X X Extracts X X X X X X X X Extracts X X X X
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