RAMADITYA INVESTMENTS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) The appellant claims to be a sub-broker and engaged in purchase and sale of shares and debentures, etc. He was found to have made some cash payments exceeding Rs. 10,000 to the tune of Rs. 5,10,921 in violation of the provisions of Section 40A(3) of the Income-tax Act read with Rule 6DD. Though he explained his position but the Income-tax Officer felt dissatisfied and ordered addition of Rs. 5,10,921 for the assessment year 1992-1993 by order dated October 4, 1993. He took appeal against this and the Appellate Commissioner by order dated July 6, 1994, directed its deletion holding :

(2.) The Revenue filed an appeal against this before the Income-tax Appellate Tribunal leading to passing of the impugned order dated November 27, 2000 keeping the addition intact. While doing so, the Tribunal referred to the clarifications issued by the Central Board of Direct Taxes in terms of Rule 6DD(j) read with Section 40A(3) and noted that no evidence or material was placed on record to show that the case fell within the exceptions contemplated by the Central Board of Direct Taxes clarifications.

(3.) All that remained to be seen was whether there was any evidence or material on record to suggest that the appellant's case fell within the exceptions provided in the Central Board of Direct Taxes clarification to Rule 6DD(j). The relevant exception which the appellant claims to be applicable to this case provides :