G.K.MATHANAGOPAL,POLLACHI vs. ITO, CHENNAI
What did the Tribunal hold?
The Tribunal upheld the CIT(A)'s decision, stating that once the assessee agreed to the disallowance in writing during assessment, they had no right to appeal. The Tribunal found no reason to interfere with the CIT(A)'s order based on the jurisdictional High Court's precedent.
What were the facts?
The assessee agreed to a disallowance of Rs. 7,94,000 under Section 40A(3) during assessment proceedings due to cash payments exceeding Rs. 20,000. The assessee later appealed this disallowance, arguing it was due to a mistake by their representative and that Rule 6DD should apply.
What were the issues?
Whether an assessee can appeal a disallowance to which they previously consented in writing during the assessment proceedings. Whether cash payments for agricultural produce to agriculturists are exempt from Section 40A(3) disallowance.
Which sections of the Income-tax Act were involved?
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- Ramanlal Kamdar v. CIT22 citing108 ITR 73 · 1977 · HC
Income Tax Appellate Tribunal, “D” BENCH, CHENNAI
Before: Dr. O.K. NARAYANAN & SHRI CHALLA NAGENDRA PRASAD
PER CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER :
This is an appeal by the assessee against the order of Commissioner of Income Tax (Appeals)-II, Coimbatore dated
2012 for the Asst. Year 2008-09. The assessee raised several
grounds in its appeal which are effectively on two issues.
2 ITA 2031/Mds/12
The first issue in the grounds of appeal is that the Commissioner of Income Tax (Appeals) erred in confirming the disallowance of ".7,94,000/- made under sec.40A(3) of the I.T. Act.
The second issue in the grounds of appeal of the assessee is that the Commissioner of Income Tax (Appeals) erred in sustaining the disallowance of ".1,43,910/- made towards diff
The order continues below.
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More judgments on Section 40A(3)
- Rekha Agarwal, Jaipur vs ITO WD 4(1), JaipurITA 844/JPR/2025[2021-22]Status: Disposed21 Oct 2026AY 2021-22
- Infra Developers, Shivpuri vs Income Tax Officer, AshoknagarITA 454/AGR/2026[2014-15]Status: Disposed16 Oct 2026AY 2014-15
- Saiyed Zaharul Alam, Murshidabad vs I.T.O., Ward - 42(1), MurshidabadITA 2233/KOL/2026[2013-2014]Status: Disposed16 Oct 2026AY 2013-2014
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