Dis-allowance under section 40 a(3)
This query is : Resolved
17 December 2011
The assesee is engaged in trading of Iron Scraps Etc. where he purchases all the scraps from the N.E.Railways under Central Government.
All the purchases are made in cash as the N.E.Railways accepts only cash. However, the tender of N.E.railways is silent on mode of payment.
Now, the A.O.Dis-allows all the purchases under Section 40 A(3).
Clearly, all the purchases of the assessee are genuine.
Is there any decided case laws or any related section for the same?
Is the assesee is covered under Rule 6DD(b)?
All the purchases are made in cash as the N.E.Railways accepts only cash. However, the tender of N.E.railways is silent on mode of payment.
Now, the A.O.Dis-allows all the purchases under Section 40 A(3).
Clearly, all the purchases of the assessee are genuine.
Is there any decided case laws or any related section for the same?
Is the assesee is covered under Rule 6DD(b)?
17 December 2011
A enterprise which is under government is free from this section.
An assessee can paid payment in cash. this situation covered in rule 6DD.
An assessee can paid payment in cash. this situation covered in rule 6DD.
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18 December 2011
but Rule 6DD specifically mentions "Where payment is made to the Government and, under the rules framed by it,such payment is required to be made in legal tender.".
How do we confirm the RULES FRAMED by the Govt. as the legal tender itself is silent about it???
How do we confirm the RULES FRAMED by the Govt. as the legal tender itself is silent about it???
18 December 2011
but Rule 6DD specifically mentions "Where payment is made to the Government and, under the rules framed by it,such payment is required to be made in legal tender.".
How do we confirm the RULES FRAMED by the Govt. as the legal tender itself is silent about it???
How do we confirm the RULES FRAMED by the Govt. as the legal tender itself is silent about it???
18 December 2011
If you can get declaration from railways that they accept only cash as a mode of payment, it may help.
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19 December 2011
sure Mr.Aijaz..that I have already told the client...Can anyone help me in getting few decided cases on the issue, if any??
23 August 2012
Thanks All
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