Cash payment cannot be disallowed if not claimed as business expense or capitalized

Kalyan Constructions Vs ITO (ITAT Hyderabad) Where assessee had not claimed cash payment of Rs. 1.50 crores for purchase of land as business expenditure or treated as stock or capitalized the same in order to claim depreciation in the future, disallowance under section 40A(3) could not be made. FULL TEXT OF THE ITAT JUDGMENT This appeal filed by the assessee is directed against the order dated 05/10/2016 of CIT(A) – 4, Hyderabad for AY 2009-1 0. 2. The assessee is a partnership firm engaged in the real estate business. The assessee filed its return of income for the AY 2013-14 on 30.09.2013 ...