Case Law Details
Pravinbhai H. Patel Vs ACIT (ITAT Ahmedabad)
ITAT Ahmedabad held that payment of cash towards purchase of land exceeding the prescribed limit is duly disallowed under section 40A(3) of the Income Tax Act.
Facts- The order passed by the Appellate Commissioner in confirming addition of Rs.1,72,39,262/- under Section 40A(3) of the Act is under challenge. According to the appellant, the same was ordered without granting an opportunity of being heard. Similarly, estimation of addition of Rs.50 Lakhs is also under challenge on the same ground of not granting opportunity of being heard to the appellant.
Conclusion- Held that considering the provisions of law particularly Section 40A(3) of the Act and the explanation under Rule 6DD of the IT Rules, 1962, 20% of the entire amount of Rs.8,61,96,310/- i.e. Rs.1,72,39,262/- was disallowed under Section 40A(3) of the Act, which, in our considered opinion, admittedly appeared to have been made upon due consideration of the relevant records produced by the appellant’s representative and submission made in support of the case made by the appellant. The impugned order is, therefore, found to be just and proper so as to warrant interference particularly in the absence of any assistance made by the appellant before us.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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