Income Tax - In order to curb cash transactions and to move into the digital world, Government of India has introduced Demonetization of old notes of Rs. 500 & Rs. 1000 from 8th November 2016 in order to control the parallel world of black market. Further, Government has also initiated various steps through various laws in India including [&hellip...
Read MoreIncome Tax - According to section 40A(3) of the Income Tax Act, if payment for any expenditure exceeding Rs.10,000 is made in cash in a day, then the expenditure will be disallowed under the Income Tax Act. ...
Read MoreIncome Tax - India has been categorized as a cash based economy since long. People are more comfortable in using cash as no prior authorization is required, no transaction charges are there, no technical knowledge is required, cash cab be used anonymously and also tax evasion become easier. In Past decade Govt. has taken various steps and has [&hellip...
Read MoreIncome Tax - Implication of Cash Cash payments exceeding Rs.10,000 under the provisions of Section 40A(3) & Section 43(1) of Income Tax Act, 1961. This article mainly focuses on the concepts of, i) Cash payments made for revenue expenditures, which are covered within the provisions of Sec. 40A(3) and ii) Cash Payments that are made for acquisiti...
Read MoreIncome Tax - In India, a large population is engaged in the agriculture sector and there are numerous transactions regarding sale and purchase of agriculture produce. The farmers sell their agriculture produce to Pacca Arahtia i.e. traders through kuchha Arahtias. Kuchha Arahtias are commission agents and are only fascilators of auctions/sales of agri...
Read MoreIncome Tax - It is suggested that there should be a positive provision under the I.T. Act that any transaction involving more than Rs.3,00,000/– (Rupees Three Lacs) shall be invalid & illegal and would be a punishable offence, if amount is not paid by account payee cheque or account payee bank draft or use of electronic clearing system through a ban...
Read MoreDCIT Vs Smt. A. Gandhimathi (ITAT Chennai) - ITAT Chennai held that payment towards purchase of wet grinders and accessories were mainly made to a cottage industry and accordingly such payment is not hit by the provisions of section 40A(3) as payment made to a cottage industry is excluded under rule 6DD(F) of the Income Tax Rules....
Read MoreMana Ram Ganpat Ram & Co. Vs ITO (ITAT Delhi) - Grit has been purchased by assessee from petty persons who are illiterate and who make their living by breaking stones by hand tools and they do not possess PAN Cards has not been proved to be false or untrue....
Read MoreRadheyshyam 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 ac...
Read MoreShivaji Bhimaji Gaikwad Vs ITO (ITAT Pune) - Shivaji Bhimaji Gaikwad Vs ITO (ITAT Pune) No section 40A(3) disallowance for Cash payment for land as part of sale consideration which is incorporated in purchase deed Brief facts relating to the issue on hand are that the assessee is an individual and derives income from land deals and constructio...
Read MoreBappanalli Brothers Vs ACIT (ITAT Banglore) - Bappanalli Brothers Vs ACIT (ITAT Banglore) CIT(A) concluded that the payments were not made directly to the cultivator and therefore the Assessee has not proved existence of circumstances set out in Rule 6DD(e) of the rules. ITAT held that The reasons given by the CIT(A) for treating the payment in...
Read MoreDCIT Vs Smt. A. Gandhimathi (ITAT Chennai) -
Mana Ram Ganpat Ram & Co. Vs ITO (ITAT Delhi) -
Radheyshyam Gupta Vs PCIT-9 (ITAT Kolkata) -
Shivaji Bhimaji Gaikwad Vs ITO (ITAT Pune) -
Bappanalli Brothers Vs ACIT (ITAT Banglore) -
Geo Connect Ltd Vs DCIT (ITAT Delhi) -
Ashwin Barai Vs ITO (ITAT Chennai) -