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ANITA SUMANTH, G. ARUL MURUGAN
Arasappan Madhivanan Prop. Of M/s. Sakthi Enterprises – Appellant
Versus
Income Tax Officer – Respondent
JUDGMENT :
(Delivered by Dr. ANITA SUMANTH., J)
Prayer : Appeal filed under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal 'B' Bench, Chennai dated 11.06.2013 in ITA No.704/MDS/2013 for assessment year 2009 – 10.
The assessee/appellant has filed this tax case appeal challenging an order of the Income Tax Appellate Tribunal (Tribunal/ITAT) in relation to assessment year (AY) 2009 – 10 dated 11.06.2013.
2. The submissions of Mr.A.S.Sriraman appearing for the appellant are as follows:-
(ii) A return of income had been filed for AY 09-10, which was processed initially under Section 143(1) and thereafter taken up for scrutiny.
(iii) In the course of assessment, the appellant's accounts were verified and it was found that cash payments in excess of Rs.20,000/- as stipulated under Section 40A(3) of the Income-Tax Act, 1961 (Act) had been made on various dates.
(iv) The smallest of the payments was a sum of Rs.1,05,000/- and the largest, a sum of Rs.12,36,100/-. On average, each paymen
Cash payments exceeding Rs.20,000 for milk procurement to a company do not qualify for exemption under Rule 6DD(e)(ii) of the Income Tax Rules, as the company is not a producer under the Income Tax A....
The burden of proof lies on the taxpayer to justify cash payments exceeding prescribed limits under Section 40A(3) with adequate evidence.
Cash payments to agents procuring paddy from farmers exempt under Rule 6DD(e) and 6DD(k) despite exceeding limit in Section 40A(3), as agricultural produce exception applies.
Genuine business transactions may qualify for exceptions under Section 40A(3); disallowances require sufficient evidence questioning genuineness.
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