Provisions of section 40A(3) not apply in absence of actual cash transaction

Radheyshyam Gupta Vs PCIT-9 (ITAT Kolkata) ITAT Kolkata held that the transaction of purchase of old gold jewellery in exchange of sale of new jewellery is covered under rule 6DD (d) and hence exempted from the provisions of section 40A(3) of the Income Tax Act. Further, there is no violation of provisions of section 40A(3) as there is no actual transaction of payment of cash. Facts- The Ld. PCIT (Principal Commissioner of Income Tax) assuming jurisdiction u/s. 263 of the Act called for assessment records and after examining the same the Ld. PCIT issued the show cause notice mainly alleging th...