[aaykarbhavan] AO couldn’t invoke sec. 40A(3) to disallow cash payments if he had made additions by rejecting books

AO couldn't invoke sec. 40A(3) to disallow cash payments if he had made additions by rejecting books

October 18, 2014[2014] 49 taxmann.com 323 (Kolkata - Trib.)

IT : Where Assessing Officer treated a part of sundry creditors as non-genuine taking a view that assessee could not file any details or no explanation was offered in respect to them, in view of fact that liability in question still existed in assessee's books of account, impugned addition was to be deleted

IT : Once books of account are rejected and profit is estimated on disputed turnover/purchases, no further disallowance can be made by invoking provisions of section 40A(3)

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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