{"id":2867,"date":"2011-03-21T22:54:26","date_gmt":"2011-03-21T17:24:26","guid":{"rendered":"http:\/\/itatonline.org\/archives\/?p=2867"},"modified":"2011-03-21T22:54:26","modified_gmt":"2011-03-21T17:24:26","slug":"cit-vs-ms-sai-metal-works-ph-high-court-s-40a3-disallowance-can-be-made-in-block-assessment","status":"publish","type":"post","link":"https:\/\/itatonline.org\/archives\/cit-vs-ms-sai-metal-works-ph-high-court-s-40a3-disallowance-can-be-made-in-block-assessment\/","title":{"rendered":"CIT vs. M\/s Sai Metal Works (P&#038;H High Court)"},"content":{"rendered":"<table width=\"150\" border=\"0\" align=\"right\">\n<tr>\n<td><a href=\"https:\/\/itatonline.org\/archives\/?dl_id=382\" onclick=\"if (event.button==0) \r\n     setTimeout(function () { window.location = 'http:\/\/itatonline.org\/downloads.php?varname=dl_id=382&varname2=sai_40A3_block_assmt.pdf'; }, 100)\" ><strong>Click here to download the judgement (sai_40A3_block_assmt.pdf) <\/strong> <\/a><\/p><\/td>\n<\/tr>\n<\/table>\n<p><strong><br \/>\nS. 40A(3) Disallowance can be made in Block Assessment even if GP estimated<br \/>\n<\/strong><\/p>\n<p>Pursuant to a search, the AO passed a <em>block assessment order u\/s 158BC in which he made a disallowance u\/s 40A(3) in respect of cash payments<\/em> exceeding Rs. 20,000. The CIT (A) &#038; Tribunal struck down the disallowance on the ground that <em>s. 40A(3) could not be invoked in a case where a block assessment was by estimate on the basis of GP rate<\/em>. On appeal by the department, HELD reversing the Tribunal: <\/p>\n<p>(i) Though the provisions of block assessment are special, the argument that they are a complete Code and the other provisions cannot apply is not acceptable. <em><strong>S. 40A(3) applies to block proceedings<\/strong><\/em>. <strong><a href=\"http:\/\/itatonline.org\/archives\/index.php\/cit-vs-suresh-n-gupta-supreme-court\">Suresh Gupta<\/a><\/strong> 297 ITR 322 (SC) &#038; <strong>M. G. Pictures<\/strong> 185 CTR (Mad)185 followed; <strong>Cargo Clearing Agency<\/strong> 218 CTR (Guj) 541 <em>not followed<\/em>;<\/p>\n<p>(ii) <strong>The argument that if income is assessed by estimation on GP rate, no other disallowance can be made is not of universal application<\/strong>. If expenditure which is legally not permissible has been taken into account that can certainly be disallowed even where income is estimated. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Though the provisions of block assessment are special, the argument that they are a complete Code and the other provisions cannot apply is not acceptable. <em><strong>S. 40A(3) applies to block proceedings<\/strong><\/em> <strong>Suresh Gupta<\/strong> 297 ITR 322 (SC) &#038; <strong>M. G. Pictures<\/strong> 185 CTR (Mad)185 followed; <strong>Cargo Clearing Agency<\/strong> 218 CTR (Guj) 541 <em>not followed<\/em><\/p>\n<div class=\"read-more\"><a href=\"https:\/\/itatonline.org\/archives\/cit-vs-ms-sai-metal-works-ph-high-court-s-40a3-disallowance-can-be-made-in-block-assessment\/\">Read more &#8250;<\/a><\/div>\n<p><!-- end of .read-more --><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[4,5],"tags":[],"class_list":["post-2867","post","type-post","status-publish","format-standard","hentry","category-all-judgements","category-high-court"],"acf":[],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/2867","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/comments?post=2867"}],"version-history":[{"count":0,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/posts\/2867\/revisions"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/media?parent=2867"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/categories?post=2867"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/archives\/wp-json\/wp\/v2\/tags?post=2867"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}