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TMI Blog2023 (2) TMI 1272X X X X Extracts X X X X X X X X Extracts X X X X ..... sions of the section 40A(3) of the Act and hence the Ld. AO is hereby directed to delete the addition to this extent. Decided in favour of assessee. Addition made u/s. 69 r.w.s 115BBE on account of deficit cash - HELD THAT:- CIT(A) has discussed the issue at length before confirming the addition made by the Ld. AO and thereby denying the claim of the assessee. Even before us the assessee has not produced any cogent evidence in support of the expenditure claimed by assessee. Under these circumstances, we are inclined not to interfere with the decision of the Ld. CIT(A)on this issue and accordingly the relevant ground raised by the assessee is dismissed. - SHRI DUVVURU RL REDDY, HON BLE JUDICIAL MEMBER SHRI S BALAKRISHNAN, HON BLE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... served on the assessee on 02/11/2018. Further, a detailed questionnaire u/s. 142(1) of the Act was issued on 11/6/2019 and was served on the assessee on 13/6/2019 and the assessee submitted its reply on 14/11/2019. Thereafter, certain questionnaire calling for the information were issued on 11/6/2019; 9/9/2019; 18/10/2019; 2/12/2019 and 16/12/2019 and duly served on the assessee. In reply the assessee s representative appeared before the Ld. AO and furnished the relevant information. After duly considering and examining the various information furnished by the assessee s representative, the Ld. AO completed the assessment u/s. 143(3) of the Act on 27/12/2019 and passed the assessment order wherein the Ld. AO made certain additions viz., (i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the Ld. AO u/s. 40A(3) of the Act and (ii) The Ld. CIT (A) erred in confirming the addition made by the Ld. AO u/s. 69 r.w.s 115BBE of the Act on account of deficit cash. 4. With respect to the addition made u/s. 40A(3) of the Act, at the outset, the Ld. Authorized Representative submitted that considering the nature of business of the assessee (aqua trading), it is obvious to the assessee to make payments in cash to the farmers. The Ld. AR further submitted that the payments were made at remote places where there were hardly any banking facilities and the fish farmers insist on cash payments due to their illiteracy and apprehension and therefore the payments were made on bank holidays. The Ld. AR referred to the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the holidays which is as under: Sl No Date Amount paid in cash Rs. Reasons for non-disallowance: payment made on a holiday and multiple payments to different payees for Prawn supply All are Prawn farmers 1. 30/07/2017 1,29,831 Sunday 2. 30/07/2017 199,074 Sunday 3. 30/07/2017 1,55,797 Sunday 4. 02/09/2017 1,48,366 Bakrid Public Holiday 5. 02/09/2017 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n before Ld. AO. On appeal, the Ld. CIT(A) confirmed the addition made by the Ld. AO. Before us, the Ld. AR submitted that the disputed sum was utilized by the assessee for urgent personal needs and expenses towards domestic front and the same were to be recorded in the cash book. Per contra, the Ld. DR relied on the orders of the Ld. Revenue Authorities. 9. We have heard both the sides and perused the materials available on record as well as the orders of the Ld. Revenue Authorities. We find it relevant to extract the finding of the Ld. CIT(A) on this issue which reads as under: 16. I have considered the grounds of appeal, gone through the submissions of the appellant and the order of the AO. It has been submitted that there was no ..... X X X X Extracts X X X X X X X X Extracts X X X X
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