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Income Tax - Written Submission in respect of Shri XXXXXXXX , XXXXXXX , XXXXXXXX , for the A.Yr. 2014-15 before the Hon’ble Commissioner of Income Tax(Appeals),XXXXXXXXX, XXXXXXXXi Respected Sir, Addition of Rs. 326000.00,Section 40A(3) of the Income Tax Act, 1961 Out of Total Purchases of Rs. 1005450.00(Including VAT) made during the F.Yr. 2013-14 ...
Read MoreIncome Tax - A. Income Tax Act, 1961 discourages transactions in cash through several of its provisions. This is done with a view to- counteracting money laundering and tax evasion; encouraging transparent business practices; providing enabling environment for growth of transparent businesses; & easing of auditing and investigations. B. The provis...
Read MoreIncome Tax - Disallowance of Expenditure made in Cash- Section 40A(3) & 3(A) (Read with Rule 6DD) (Read with Section 269 ST & Section 271 DA of Income Tax Act, 1961) (Read with Notification 08/2020) Section 40A(3) Cash Payment in Current Year Any payment made to a Person, in a day, for a single Bill exceeding Rs. 10,000 […]...
Read MoreIncome Tax - Keeping a check on cash transactions under income tax (with illustrations) INTRODUCTION: We come across a common saying ‘Cash is King,’ however idle cash can never generate any interest income, therefore channelizing the idle money into digital mode shall generate income. The Cashless economy is a system where majority of transactions...
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 Arahtias i.e. traders through kachha Arahtias. Kachha arahtia are commission agents and are only facilitators of auctions/sales of agr...
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 MoreKedar Nath Sawhney Vs ACIT (ITAT Delhi) - Kedar Nath Sawhney Vs ACIT (ITAT Delhi) The assessee in terms of its contract is bound to deliver the goods within the stipulated time. In the course of such transportation, the assessee is bound to incur expenses for putting fuel in the vehicle, payment of toll gate charges, incurring of expenses f...
Read MoreVaduganathan Talkies Vs ITO (Madras High Court) - Revenue is right in contending that the genuinity of the transaction is hardly a matter, which should weigh in the minds of the Assessing officer while examining as to the whether the assessees had violated Section 40A(3) of the Act....
Read MoreK.K. Construction Co. Vs. ACIT (ITAT Jaipur) - K.K. Construction Co. Vs. ACIT (ITAT Jaipur) Conclusion: Dis allowance under section 40A(3) could not be made as identity of persons from whom purchases had been made was established; source of cash payments was clearly identifiable in form of withdrawals from assessee’s bank accounts and the said...
Read MoreNam Estates Pvt. Ltd Vs. ITO (Karnataka High Court) - Assessee couldn’t demonstrate with cogent evidences that there was business expediency or sufficient cause for such cash payment. Assessee failed to prove that the case was covered in the exception clause as provided under section 40A(3) read with Rule 6DD....
Read MorePCIT Vs Sumukha Synthetics (Madras High Court) - The issue under consideration is whether the disallowance under Section 40A(3) of the Act as made by the Assessing Officer is sustainable under Income Tax Act when banking facility was available but the bank account could not be operated by the very bank themselves because of an order of attachment ...
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Kedar Nath Sawhney Vs ACIT (ITAT Delhi) -
