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TMI Blog2021 (6) TMI 451X X X X Extracts X X X X X X X X Extracts X X X X ..... #39;s appeal for the A.Y. 2014-15 against the order of the CIT (A)-4, Hyderabad, dated 22.12.2017. 2. Brief facts of the case are that the assessee firm, engaged in the business of wholesale and retail business of mobiles, filed its return of income for the A.Y. 2014-15 on 21.11.2014 admitting an income of Rs. 1,92,190/-. During the assessment proceedings u/s. 143(3) of the Act pursuant to select ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 11,78,000/- and brought it to tax. Aggrieved, assessee preferred an appeal before the CIT (A) who confirmed the order of the Assessing Officer and the assessee is in second appeal before the Tribunal by raising the following grounds of appeal: "1. The order of the learned CIT(A) is against the principle of natural justice and bad in law. 2. The learned CIT (A) ought to have allowed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... zation of the cheques or DDs which usually take 3 to 4 working days. Since the mobile market is highly fluctuating and rates alter on daily basis, 3 to 4 days for cheque/DD clearance will be too long a period and by then, the business opportunity will be lost. Therefore, the assessee had no option but to buy the goods by making the payments either by credit cards or through cash or net. It was sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see, the cash payments were made for genuine purchases from the genuine multinational company. He, therefore, prayed that the additions made u/s. 40A(3) be deleted. The assessee also placed reliance upon the following decisions in support of his contentions: i) THE Hon'ble Allahabad High Court in the case of CIT vs. Chaudhary & Co reported in 129 CTR 010 (1996) : (217 ITR 431)(All.). ii) T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made certain payments exceeding Rs. 20,000/- in cash and therefore, the provisions of section 40(A)(3) would get attracted provided the transaction fall under Rule 6DD of IT Rules. The explanation given by the assessee was that all the purchases were made on Saturdays and that too after banking hours. This contention has not been verified by the Assessing Officer. This contention of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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