IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE HARUN-UL-RASHID TUESDAY, THE 16TH DECEMBER 2008 / 25TH AGRAHAYANA 1930 ITA.No. 97 of 2007() -------------------- ITA.NO.334/COCH/2003 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT/APPELANT: --------------------------------------- THE COMMISSIONER OF INCOME TAX, THIRUVANANTHAPURAM. BY ADV. SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT(S): RESPONDENT: -------------------------- M/S. ANUGRAHA BUILDERS, RATHAPURAKUNNU, SASTHAMANGALAM,THIRUVANANTHAPURAM. ADV. SRI.T.M.SREEDHARAN FOR R1 SRI.V.P.NARAYANAN FOR R1 THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 16/12/2008, THE COURT ON 16/12/2008 DELIVERED THE FOLLOWING: C.N.RAMACHANDRAN NAIR & HARUN-UL-RASHID, JJ. .................................................................... I.T. Appeal No.97 of 2007 .................................................................... Dated this the 16th day of December, 2008. JUDGMENT Ramachandran Nair, J. Heard Standing Counsel appearing for the department and counsel appearing for the assessee. Question raised pertains to disallowance of cash payments in excess of limits provided under Section 40A(3) of the Income Tax Act. As against disallowance of around Rs.5 lakhs, the Commissioner (Appeals) after examining the various items of expenditure, sustained disallowance of Rs.50,000/- and balance was allowed. This is confirmed by the Tribunal against which appeal is filed by the Department. We do not find any substantial question of law arising from the order of the Tribunal because Tribunal found that on facts the payments allowed by the C.I.T.(Appeals) are justified under Rule 6DD(j) of the Income Tax 2 Rules read with circular issued by the Department. We, therefore, dismiss the appeal. C.N.RAMACHANDRAN NAIR Judge HARUN-UL-RASHID Judge pms