RAJMOTI INDUSTRIES Vs. ASSISTANT COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) These appeals are filed by assessee challenging the common judgment of the Tribunal dt. 30th Sept., 2013. Facts being similar, we may notice those arising in Tax Appeal No. 105 of 2014. Appeal involves asst. yr. 2007-08. For the said assessment year, assessee filed return of income declaring total income of Rs. 83.28 lakhs (rounded off). The return was taken in scrutiny. The A.O. framed order of assessment dt. 31st Dec., 2009. In such order, he disallowed a sum of Rs. 26,72,198 being 20 per cent of the total payment of Rs. 1,33,60,988 made by the assessee during the year under consideration otherwise than by account payee cheque in violation of provisions of s. 40A(3)(a) of the I.T. Act, 1961 (for short "the Act").

(2.) The assessee carried the matter in appeal. CIT(A) dismissed the assessee's appeal. CIT(A) examined further facts as urged by the assessee for which remand report was called for from the AO.

(3.) He highlighted such facts as under: