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TMI Blog2022 (12) TMI 176X X X X Extracts X X X X X X X X Extracts X X X X ..... he payments made to a single party otherwise by an account payee cheque drawn on a bank or account payee bank draft exceeds Rs.20,000/- in a day. It means that the provisions of section 40A(3) of the Act is very clear and assessee is unable to prove that his case falls under any of the exception as provided under Rule 6DD of the Income Tax Rules, 1962. Hence, we confirm the disallowance. - Decided against assessee. - ITA Nos. 3497 & 3498/CHNY/2018 - - - Dated:- 18-11-2022 - SHRI MAHAVIR SINGH , VICE PRESIDENTAND SHRI G. MANJUNATHA , ACCOUNTANT MEMBER Appellant by : Shri I. Dinesh , Advocate Respondent by : Shri R. Mohan Reddy , CIT ORDER PER MAHAVIR SINGH , VICE PRESIDENT : These two appeals by the assessee are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been issued for framing of assessment u/s.143(3) of the Act or 144 of the Act. The ld. CIT-DR produced assessment records and also produced copy of notice issued u/s.143(2)of the Act, which was actually received by assessee himself. When this was confronted to ld. counsel for the assessee, he could not make any further argument. 4. Since the Revenue has issued notice u/s.143(2) of the Act and copy is placed on record by the Revenue and produced assessment records before us, we are of the view that this issue does not remain in favour of assessee. Hence, this additional ground raised by assessee is accordingly dismissed. 5. The next common issue in both the appeals of assessee for assessment year 2012-13 and 2013-14 is as regards to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l Mills, I have to make only cash payment for purchases. Others accept payments through RTGS Remittance. All Dhall purchases are made through brokers and only cash payments are made. As far as sale is concerned, 85% is only cash sales. From S.V.S. Oil I have started purchasing only from last month and Dhall purchases I have been doing for nearly two years. Further, the assessee also agreed during statement recorded on 19.12.2016 that the assessee has made cash payment in excess of Rs.20,000/- towards purchase of dhall and oil vide question Nos.8 9 and the relevant questions and answer as reproduced in assessment order are being reproduced again as under:- Q.8. During the course of survey proceedings, it was found that you have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1/- and purchase of oil of Rs.4,13,50,000/-. Therefore, the AO made total disallowance by invoking the provisions of section 40A(3) of the Act amounting to Rs.22,58,09,550/-. Aggrieved, assessee preferred appeal before CIT(A). The CIT(A) also confirmed the action of the AO. Aggrieved, assessee is in appeal before the Tribunal. 7. After hearing rival contentions and going through the case records, it is noted that it is an admitted position that the assessee is a trader i.e., retail and wholesale trader of dhall and oil and he admitted that he is making payment in cash in excess of Rs.20,000/- for purchase of dhall and oil and for which, he has made total payments to the extent of Rs.22,58,09,550/-. Even, now before us the ld.counsel coul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of section 40A(3) of the Act and confirmed by the CIT(A) for an amount of Rs.22,49,07,400/-. Since the facts and circumstances are identical, taking a consistent view, we dismiss this issue in assessment year 2013-14 also. 9. The next issue in assessment year 2013-14 is as regards to the order of CIT(A) upholding the action of AO in confirming the disallowance of bad debts claimed amounting to Rs.4,94,28,399/-. 10. At the outset, the ld.counsel for the assessee conceded the ground of bad debts and stated that he is not interested in prosecuting the same. Hence, the same is dismissed as not - prosecuted. 11. In the result, the appeals filed by the assessee are dismissed. - Order pronounced in the open court on 18th November, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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