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TMI Blog2023 (2) TMI 1375X X X X Extracts X X X X X X X X Extracts X X X X ..... ntrary to law and the facts of the case. 2. The impugned order has been passed without application of mind, without taking note of the evidence filed and the submissions made. 3. The learned Commissioner of Income Tax (Appeals) ought to have appreciated that the provisions of section 40A(3) do not apply to the purchase of bio-mass and for transport payments. 4. The appellant craves leave to file additional grounds. 5. For these and other grounds that may be adduced at the time of hearing, it is prayed that the returned income be accepted and justice rendered. 3. The brief facts of the case are that a search and seizure operations u/s. 132 of the Income Tax Act, 1961 (in short "the Act") was carried out in M/s. Sri Ramachandra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal. The Ld.CIT(A) after considering relevant submissions of the assessee and also taken note of decision of ITAT, observed that the assessee has made cash payment in excess of Rs. 20,000/- as prescribed u/s. 40A(3) of the Act, and further, cash payments made by the assessee are also not covered under any exception as provided u/r.6DD of the Income Tax Rules, 1962. Therefore, sustained the additions made by the AO towards disallowance of cash payment u/s. 40A(3) of the Act. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us. 5. The Ld.AR for the assessee referring to the decision of ITAT, Chennai Benches in the assessee's own case for the AYs 2008-09 to 2011-12 in ITA Nos.1864 to 1867/Mds/2015 & CO Nos.125 to 128 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh orders of the authorities below. The AO has disallowed cash payments of Rs. 8,64,900/- u/s. 40A(3) of the Act, on the ground that the cash payments to three parties in a single day is in excess of sum of Rs. 20,000/- as prescribed u/s. 40A(3) of the Act. It was the explanation of the assessee that each payment to one person does not exceeds the specified limit, however, sum paid in a single day to a person was in excess of Rs. 20,000/- as prescribed u/s. 40A(3) of the Act. According to the assessee, there is an urgent requirement of cash payments to transporters of bio-mass waste, because, the assessee is procuring biomass waste from local persons and requires to pay in cash to the transports for their requirements. We find that as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght out clear facts to the effect that there is no obligation on the part of the assessee to make payment towards transportation charges. Further, the assessee itself has accepted the fact that payment of transportation charges was the responsibility of the supplier and in fact, whatever amount paid to three parties has been debited to supplier's account. Therefore, we are of the considered view that findings and facts recorded by the Tribunal in earlier assessment year does not apply to the facts of the present case. Hence, it cannot be said that the case of the assessee is covered by the decision of the ITAT for earlier assessment year. 8. In this view of the matter and considering the facts and circumstances of the case, we are of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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