Assessee paid LIC Premium on Dt.31/03/2008 by way of Bank Cheque but the Bank Cheque cleared on Dt. 4th Arpil2008.
Assessing Officer disallowed claim by saying that the payment is not cleard during the financial year,despite the fact that the LIC Receipt is produced as proof of payment Dt. 31/03/2008. Please quote the CASE LAW favouring the Assessee.
Sir,
In Negotiable Instrument Act 1881, it is mentioned that the drawer of cheque is discharged when he delivers the cheque to payee. for more details pl. refer the following link and produce the print out before the ITO
https://www.financialexpress.com/news/payment-by-cheques-what-the-law-says/111206/
if the assesee has declared bank balance after provision of LIC premium, then there is no question for disallowance, please chek your statements submitted, and bank balance on 31/03/2008, and look for provisions made for LIC payment made on 31/03/2008,
remember that savings accounts cant carry negetive balance generally.
Rahul Dang & Associates-Chartered Accountants
Pune
CA Inter
View Details
Sri Aurobindo Gnostic Centre of Education
New Delhi
CA
View Details
CAclubindia
