| Case ID |
2b6ed7cd-52f8-47d6-b068-f0358d474c0b |
| Body |
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| Case Number |
D-2741 of 2016 |
| Decision Date |
Jan 01, 1987 |
| Hearing Date |
Jan 01, 1987 |
| Decision |
The Tribunal found that the payment of Rs. 35,000 was made under exceptional circumstances and thus was not subject to the restrictions of section 40A(3) of the Income-tax Act, 1961. The Court ruled that the findings of fact made by the Tribunal could not be challenged as they were not disputed by the revenue in the reference application. Consequently, the application under section 256(2) was dismissed, affirming the Tribunal’s ruling that the payment was justified based on the evidence presented. |
| Summary |
In this significant case adjudicated by the Rajasthan High Court, the court addressed the complexities surrounding cash payments exceeding the threshold established by the Income-tax Act, 1961, specifically under section 40A(3). The case revolves around a payment of Rs. 35,000 made by Mahendra & Co. Ltd. to Kishore Trading Co. under exceptional circumstances, which the assessing officer initially disallowed. The Tribunal later found that the payment was legitimate and not subject to the cash payment restriction due to the unique circumstances surrounding it. This case illustrates the importance of evidentiary support in tax-related disputes and emphasizes that findings of fact by the Tribunal are binding unless explicitly challenged. The ruling ultimately reinforces the legal framework governing cash transactions in taxation, making it a pivotal reference in future cases involving similar statutory provisions. |
| Court |
Rajasthan High Court
|
| Entities Involved |
Not available
|
| Judges |
S.N. Bhargava,
Mohini Kapur
|
| Lawyers |
R.N. Surolia,
N.M. Ranka,
N.K. Jain
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Mahendra & Co. Ltd.
|
| Citations |
1987 SLD 2717,
(1987) 163 ITR 316
|
| Other Citations |
Registhan (P.) Ltd. v. CIT [1984] 146 ITR 620 (Raj.),
CIT v. Greaves Cotton & Co. Ltd. [1968] 68 ITR 200 (SC)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
256,
40A(3),
40A(8)
|