| Case ID |
04453753-30d3-4f72-bd0a-31e4cd6e230f |
| Body |
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| Case Number |
TAX APPEAL No. 22 OF 2007 |
| Decision Date |
Oct 11, 2007 |
| Hearing Date |
|
| Decision |
The Gujarat High Court dismissed the appeal at the admission stage, confirming the findings of the Commissioner of Income-tax (Appeals) and the Tribunal. The court upheld that payments made in cash by the assessee were justified due to the absence of banking facilities in the concerned village, thus falling under exceptional circumstances as per rule 6DD(j) of the Income-tax rules, 1962. The court emphasized that whether there were compelling reasons for cash payments is fundamentally a question of fact, which was duly considered by the appellate authorities. |
| Summary |
This case revolves around the interpretation of Section 40A(3) of the Income-tax Act, 1961, concerning business disallowance due to cash payments exceeding prescribed limits. The case highlights the importance of understanding exceptional circumstances where banking facilities are unavailable. The Gujarat High Court's ruling reinforces the principle that genuine payments made in cash can be accepted under such conditions, thereby protecting the interests of taxpayers. This case is pertinent for practitioners in tax law and emphasizes the significance of factual findings in appellate proceedings, particularly regarding payment methods in areas lacking banking infrastructure. The judgment provides clarity on the application of rule 6DD(j) and its implications for business transactions in cash. Advocates and tax consultants should take note of this ruling for future cases involving similar circumstances, as it underscores the need for proper documentation and justification of cash transactions in the absence of banking facilities. |
| Court |
Gujarat High Court
|
| Entities Involved |
Commissioner of Income Tax,
Parle Sales And Services P. Ltd.
|
| Judges |
Y.R. MEENA C.J.,
MS. ABHILASHA KUMARI, J.
|
| Lawyers |
Manish R. Bhatt
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Parle Sales And Services P. Ltd.
|
| Citations |
2008 SLD 4296,
(2008) 307 ITR 87
|
| Other Citations |
CIT v. Parle Sales & Services (P.) Ltd. [2008] 307 ITR 87 (Guj.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
40A(3)
|