COMMISSIONER OF INCOME TAX Vs. BANWARI LAL BANSHIDHAR

JUDGEMENT

(1.) HEARD counsel for the parties.

(2.) THE Income-tax Appellate Tribunal (Allahabad Bench), referred the following questions for the opinion of this court under Section 256(2) of the Income-tax Act, 1961 (briefly, "the Act") I

(3.) THE Assessing Officer also found that the assessee made cash payments exceeding Rs. 2,500 to its suppliers in the head office and in the branch office to the extent of Rs. 54,588 and Rs. 37,340, respectively. As the payments were not supported by the requisite draft/crossed cheques, etc., they were disallowed in view of Section 40A(3) of the Act. THE alternative plea of the assessee that the payments in cash had been made to the genuine parties in exceptional circumstances was rejected.