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TMI Blog2024 (6) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... igencies where it is not possible for the transaction to be made through Bank and a person is forced to pay money by way of cash. The onus of proving that such a circumstance existed and indeed payment has been done in cash and the income has not escaped assessment is on the assessee In the instant case, the assessee is in the business of cloth. He has not produced any believable document before the AO to show that there was an exigency and he had to necessarily make payments on 31st March, 2013 itself to the persons as contended by him and he has also failed to show that he could not have made payment by way of cheque. He has also not produced any believable document to show that the said persons have infact received the said consideration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as a Sunday and Bank holiday. It is contended that the appellant is exempted under Section 40A (3A) proviso read with Rule 6DD (j) of the Income Tax Rules, 1962. 5. Section 40A (3A) first proviso of the Income Tax Act, 1961 reads as under : Expenses or payments not deductible in certain circumstances. X X X X X (3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, or use of electronic clearing system through a bank account or through such other electronic mode as may be prescribed, exceeds ten thousand rupees, no deduction shall be allowed in respect of such expenditure. (3A) Where ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3A) of section 40A where a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees in the cases and circumstances specified hereunder, namely :- (a) XXXXX (b) XXXXX (c) XXXXX (d) XXXXX (e) XXXXX (f) XXXXX (g) XXXXX (h) XXXXX (i) XXXXX (j) Where the payment was required to be made on a day on which the banks were closed either on account of holiday or strike; 7. Restriction is imposed on the amount of transaction that a person can make in cash for business expenditure becau ..... X X X X Extracts X X X X X X X X Extracts X X X X
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