No disalllowance U/s. 40A(3) for cash Payment of electricity bills of JVVNL

Sumit Industries Vs. ITO (ITAT Jodhpur) The brief facts of the case are that the assessee has made payment in cash otherwise than by an account payee cheque drawn on a bank or account payee bank draft in excess of twenty thousand rupees aggregating in a single day in contravention of section 40A(3) of the Act. Since the assessee has incurred expenditure otherwise than an account payee cheque exceeding Rs. 20,000/-, no deduction shall be allowed in respect of such expenditure. Hence, an amount of Rs.1,86,628/- is disallowed under section 40A(3) of the Income-tax Act, 1961 and added back to the ...