Dismissing the appeal of the revenue the Court held that both the Commissioner (Appeals) and the Tribunal had recorded concurrent findings on the issue of cash purchases. The cash purchases were around 2 per cent. of the total purchases. Such purchases were in a series of transactions which involved an amount of less than Rs. 20,000 and the books of account of the assessees were not rejected by the Assessing Officer. Order of Tribunal is affirmed. Shree Choudhary Transport Co. v. ITO (2020)426 ITR 289 (SC) distinguished. (AY. 2002-03)
PCIT v. Ajit Ramakant Phatarpekar (2020) 429 ITR 319 / 196 DTR 296 /( 2021 ) 277 Taxman 543 (Bom.)(HC) PCIT v. Neelam Ajit Phatarpekar (2020) 429 ITR 319 / 196 DTR 296/ ( 2021 ) 277 Taxman 543 (Bom.)(HC)
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Books of account not rejected- Transactions involving less than Rs.20,000 – H Forms obtained-Deletion of addition is held to be justified. [S. 37(1)]