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TMI Blog2013 (12) TMI 1710X X X X Extracts X X X X X X X X Extracts X X X X ..... nditure. Decision in favor of assessee. - Joginder Singh, J. JUDGMENT The Revenue is aggrieved by the impugned order dated 21.2.2013 of the ld. CIT(A)-I, Indore. Both the grounds raised pertain to deleting the additions of ₹ 1,39,805/- which was made to the income of the assessee on account of unaccounted credits and further disallowing ₹ 13,34,498/- u/s 40A(3) on the plea that this amount was made on various occasions in cash. 2. During hearing, we have heard Shri R.A. Verma, ld. SR. DR and Shri H.P. Verma along with Shri Anup Khandelwal, learned Counsel for the assessee. The crux of arguments on behalf of the Revenue is in support to the assessment order whereas the learned Counsel for the assessee defended the impugned orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oned in the statutory forms, I do not find any disagreement with the appellant as regard to quantum of purchases made. On this pretext appellant has also filed copies of statutory forms along with submissions made during appellate proceedings. The facts on record clearly suggest that purchases are genuine and beyond doubt of imagination, as the appellant has made the payment in three different modes i.e. 1. Through account payee cheques 2. Through book adjustment entry by either party. 3. Through direct deposit in bank account of supplier. 4.4 Further I also find that all the alleged cash payments are appearing in bank statement of M/s. Altos Enterprises Ltd. and these payments are directly deposit to bank account of supplier and not being ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court (Indore Bench) in the case of CIT vs. Punjab Boot House Ltd., wherein it has been held that the object behind the provision is that persons are not allowed to show false expenditure for avoiding income-tax and, therefore, once the genuineness of payment and identity of the payee is established fully, the object is achieved and in such a situation, if the payment has been made looking to the necessity of settlement or difficulty of payee, as payee was in need of money after bank hours, the same cannot be said to have been made in violation of the object of the rules. Thus, I consider it proper and appropriate to hold that in the appellant s case, the purchases are genuine and payment are made through banking channel. Hence no disallo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exigency. The reconciliation statement also reflects such entries and the purchases were found to be genuine. The department has not brought on record any contrary material disproving the claim of the assessee. The ld. CIT(A) has already relied upon certain judicial decisions. The closing and opening balance of the assessee as well as the payee company are matching and the suspicion arose in the mind of the Assessing Officer merely due to time get. The ld. Assessing Officer added a sum of ₹ 13,34,498/- to the income of the assessee for violation of the provisions of Section 40A(3) of the Act on the ground that the individual amounts were exceeding ₹ 20,000/- whereas the assessee made the payments in three different modes like, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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