ASSOCIATED ENGINEERING ENTERPRISE Vs. COMMISSIONER OF INCOME TAX
LAWS(GAU)-1994-5-4
HIGH COURT OF GAUHATI
Decided on May 13,1994

ASSOCIATED ENGINEERING ENTERPRISE Appellant
VERSUS
COMMISSIONER OF INCOME TAX Respondents


Referred Judgements :-

HASANAND PINJOMAL VS. CIT [REFERRED TO : (1978) 112 ITR 134 (GUJ) : TC 18R.483]
GIRIDHARILAL GOENKA VS. COMMISSIONER OF INCOME TAX [REFERRED TO]



Cited Judgements :-

PAWAR WINE SHOP VS. THE TAX RECOVERY OFFICER [LAWS(IT)-2015-1-367] [REFERRED TO]


JUDGEMENT

V.D.GYANI, J. - (1.)IT is at the instance of the assessee that the following question has been referred by the Tribunal for this Court's opinion :
"Whether, on the facts and in the circumstances of the case and on a proper interpretation of s. 40A(3) of the Act, 1961, r/w r. 6DD(j) of the IT Rules, 1962, the Tribunal was justified in law in holding that the disallowance by the ITO in respect of the cash payments of Rs. 31,809 made on various dates to Rallis India Ltd. was proper ?"

(2.)A few basic facts leading to the reference may now be noted.
Certain cash payments amounting to Rs. 31,809 (as detailed below) made by the assessee to Rallis India Ltd. on different dates, were sought to be explained by the assessee who was called upon by the ITO to explain as to what were the compelling circumstances which necessitated cash payments, in violation of S. 40A(3). The assessee in response thereto, while explaining the circumstances, submitted a confirmation letter (annexure -A/2) from Rallis India Ltd. which is reproduced below for ready reference :

"We, Rallis India Ltd., Engineering Division, Gauhati Depot, do hereby certify and confirm that on a number of occasions, Associated Engineering Enterprise, A. T. Road, Gauhati, was specially requested by us during the year ending 31st March, 1982, to make us part payment in cash against our bills and cash memos, in order to enable us to meet urgent cash needs of our Gauhati Depot. Very often this becomes necessary for us when we do not receive the remittances in time from our Calcutta office. The details of bills and cash memos against which either part payment or full payment was received in cash during the year are given below : Bill No. or C.M. No. Date of Bill/C.M. Amount of Bill/C. M. Amount of payment received in cash Date of receipt . . Rs. Rs. . WT/SP/G/2 30 -04 -81 16,143.16 3,000.00 08 -06 -81 . . . 4,143.16 17 -06 -81 WT/SP/G/14 16 -07 -81 22,926.56 5,000.00 22 -07 -81 For Rallis India Ltd. (Engineering Division) (Sd.) Gauhati Depot in -charge."

(3.)THE details of payments, as quoted above, are omitted from the confirmation letter (annexure - A -2).


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.