During the assessment proceeding, the assesse was asked to explain cash payment made to one party. Assessee contended that due to the mistake of the accountant, the details were wrongly entered and submitted a revised account wherein all payment were below Rs. 20,000. Such explanation was not accepted by any lower authority. High Court held that the assessee failed to substantiate its plea of mistake of accountant and the fact that all payments were below Rs. 20,000/-, accordingly, it held that appreciation of same evidence to come at different conclusion does not fall within the realm of substantial question of law. (AY. 2012-13)(ITA No. 112 of 2019 dt . 25.02.2019)
Nangal Spun Pipe Co. (P) Ltd. v. CIT (2019) 177 DTR 393/ 108 taxmann.com 127 / 266 Taxman 8 ( Mag)/ 308 CTR 751 (P&H)(HC)
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits – During assessment proceedings, assessee submitted revised accounts showing all payments below Rs .20000 – Not accepted by any lower authority–Held, assessee failed to substantiate its claim – Held, no substantial question of law. [S. 260A]