The Commissioner (Appeals) considered the nature of transaction and held that the Assessing Officer was not justified in considering the property in question to be stock-in-trade and held that section\u00a040A(3)\u00a0was not attracted. On appeal by the Department before the Tribunal, there was a difference of opinion between the Members who heard the appeal. Consequently, the President of the Tribunal in his power under section\u00a0255(4)\u00a0referred the matter to the Third Member who affirmed the findings of the Commissioner (Appeals) holding that when an expenditure was incurred for which payment was not made in cash or monetary terms, the provisions would have no application. On appeal\u00a0 dismissing the appeal of the Revenue the Court held\u00a0 that the Department did not state that any cash transaction took place. There was no perversity in the order passed by the Third Member of the Tribunal in agreement with the Accountant Member that the provisions of section\u00a040A(3)\u00a0were not applicable. (AY.2007-08)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-No payments for purchase of shares made in cash-Disallowance is not attracted.[S.255(4), 260A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","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":""},"categories":[21],"tags":[],"class_list":["post-47422","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-ckS","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=47422"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47422\/revisions"}],"predecessor-version":[{"id":47423,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47422\/revisions\/47423"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=47422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=47422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=47422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}