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TMI Blog2022 (6) TMI 1397X X X X Extracts X X X X X X X X Extracts X X X X ..... o the suppliers but deposited the same directly into their bank accounts. In support, the assessee has placed on record bank deposit slips. This is stated to have been done on the request of the suppliers and the suppliers themselves have furnished the bank account details to the assessee to ensure fast receipt of payment without delay. It could be also noted that genuineness of the payment or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1. Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of the order of learned Commissioner of Income Tax (Appeals), Puducherry [CIT(A)] dated 28.02.2020 in the matter of assessment framed by the Learned Assessing Officer [AO] u/s. 143(3) of the Act on 31.10.2018. The sole grievance of the assessee is disallowance u/s 40A(3) on account of cash payment to various suppliers exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons of Sec.40A(3) and none of the exception as enumerated in the provisions was applicable to the case of the assessee. Having heard rival submissions, our adjudication would be as under. 4. The assessee being resident firm is stated to be engaged in the business of textiles. It transpired that the assessee made cash payment of Rs.14,20,377/- to various suppliers in violation of Sec.40A(3). Thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were covered by any of the exceptions as carved out in Rule 6DD of Income Tax Rules. The case laws as relied upon by the assessee were held to be distinguishable on facts. Accordingly, the disallowance of Rs. 12,71,789/- was confirmed against which the assessee is in further appeal before us. 6. Upon perusal of documents, we find that that the assessee has not made cash payment directly to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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