The\u00a0 assessee is a government contractor, cash book of the assessee \u00a0showed that during year he made cash payments exceeding Rs. 20,000 on a single day for material purchased. Assessee contended before Assessing Officer that though cash book showed payments exceeding Rs. 20,000 in cash on a single day for material purchased, day book clearly bifurcated same based on truck loads of material received, which indicated payment having been made individually to truck drivers and none of which single payment exceeded Rs. 20,000.\u00a0 Assessing Officer held \u00a0that no substantiating bills or vouchers had been produced by hence \u00a0disallowed 20 per cent of cash payments by invoking provisions of section 40A(3). Tribunal affirmed the order of the Assessing Officer. On appeal the Court held that \u00a0since assessee had not shown as to whether supplies were sourced from different persons and had not produced any supporting bills or vouchers, which lead to only a reasonable inference that amounts were paid to supplier in lump sum for material delivered on a single day. Order of Tribunal is affirmed. (AY. 2004-05)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Purchases of amount exceeding Rs. 20, 000, on a single day-Failure to produce bills-Disallowance made by Assessing Officer of 20 per cent of cash payments is affirmed. [R. 6DD, 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-47523","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cmv","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47523","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=47523"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47523\/revisions"}],"predecessor-version":[{"id":47524,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47523\/revisions\/47524"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=47523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=47523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=47523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}