SECTION 40A(3) READ WITH RULE 6 DD
SIR! OUR CLIENT IS DEALING IN SELLING OF KRAFT WASTE PAPER IN GUJARAT , PURCHASE IT FROM MUMBAI, THANE, PUNE, SURAT, VAPI, SILVASSA ETC., SELL THE SAME TO PAPER MILLS MANUFACTURING KRAFT PAPER USING KRAFT WASTE PAPER AS RAW MATERIAL.
THE CLIENT RECEIVE PAYMENT INCLUDING VAT FRO PAPER MILLS IN CHEQUE, DEPOSIT THE SAME IN BANK, WITHDRAW CASH & MAKE PAYMENT TO WASTE PAPER SUPPLIER IN CASH AS THEY DO NOT HAVE ANY BANK ACCOUNT, ALL ARE UNREGISTERED DEALERS.
THE CLIENT BUSINESS WILL BE SUFFERED IF HE DO NOT MAKE THE PAYMENT IN CASH TOWARDS PURCHASES.
IN BOOKS , PURCHASE IS BOOKED FROM VARIOUS PARTIES, SHOW PAYMENT NOT EXCEEDING RS. 20000/- DAY IN ORDER TO NOT TO ATTRACT SEC. 40A(3).
IS THERE ANY CIT-APPEALS, ITAT- PREFERABLY FROM GUJARAT , H.C. OR S.C. ADJUDICATING THAT IF THE BUSINESS OF THE ASSESSSEE WILL SUFFER IF PURCHASE IS NOT POSSIBLE WITHOUR PAYING CASH, RATHER THEN CHEQUE.??????
KINDLY LET US KNOW AT OUR MAIL ID -lnmittal @ dataone.in.
CA Laxmi Mittal
M.No. 038894
CAclubindia
