CIT Vs. SAPNA TRADERS

JUDGEMENT

(1.) The Income Tax Appellate Tribunal, Allahabad Bench, has referred the following question of law under Section 256(2) of the Income Tax Act, 1961 (hereinafter referred to as the Act), for opinion to this Court:

(2.) Briefly stated the facts giving rise to the present reference are as follows:

(3.) The assessee, being aggrieved, filed second appeal before the Tribunal. The Tribunal vide its order dated 14-3-1991 deleted the said addition on the ground that the payments were made as the supplier insisted on cash payment and because of business exigency the said payment was made in cash and consequently the alleged payment did not attract the provisions of Section 40A(3).