knowledge that the cash payments were made due to some unavoidable
circumstances.
5. The Assessing Officer further referred to the nature of business
disclosed ... family,
repeated cash payments were made which shows that there were no
unavoidable circumstances to make cash payment to the sellers
below:-
"Business expenditure-Disallowance under s. 40A(3) -Exceptional and
unavoidable circumstances-Assessee has to establish only one of the
requirements as provided ... namely, that the payment
was made in exceptional and unavoidable circumstances or the payment by
cheque or bank draft was not practicable or would have
made. All such
cases would come within the purview of exceptional
or unavoidable circumstances."
17. In CIT Vs. Trinity T raders ... fact that cash payments
were made only under exce ptional and unavoidable
circumstances. This conclusio n has been arrived at
by the Tribunal after examining
officer to have been lost or destroyed by natural causes or by unavoidable accident during transport from the place of procurement to the applicant ... were lost; (ii) destroyed by natural causes; and (iii) destroyed due to unavoidable accident.
20. He pleaded that the word 'lost
remission of duty in case of loss of
goods due to unavoidable accident.
Appellant was working under compounded levy scheme as
provided for under section ... goods have been lost or
destroyed by natural causes or unavoidable accident"
would, in the context of compounded levy scheme or the
Rules, necessarily
bank or by a
crossed bank draft-
a. due to exceptional or unavoidable circumstances; or
b. because payment in the manner aforesaid was not practicable ... bank or by a crossed
bank draft-
(1) due to exceptional or unavoidable circumstances, or
(2) because payment in the manner aforesaid was not practicable
prove that the cash payments were made
3
due to exceptional / unavoidable circumstances covered under rule 6DD. It was held
that the provision of section ... observed that where the assessee was unable to explain any
unavoidable / exceptional circumstances covered under Rule 6DD, addition made
under section 60A(3) were justified
below:-
"Business expenditure-Disallowance under s. 40A(3) -Exceptional and unavoidable
circumstances-Assessee has to establish only one of the requirements as provided ... namely, that the payment was made in exceptional and
unavoidable circumstances or the payment by cheque or bank draft was not
practicable or would have
been admitted in the impugned
order. Further, the fire accident was unavoidable, is also not in dispute. In
such case appellant was legally entitled ... dispute that the goods were destroyed in fire . The
fire accident was unavoidable and on the entire fire accident the
Insurance Company also processed
meaning of the phrase "goods have been
lost or destroyed by unavoidable accident".
there is no dispute that fire took place ... accident as electric short circuit. It is submitted that
it is an unavoidable accident.
impugned order observes that the intimation was given
with unusual delay
