No disallowance U/s. 40A(3) on Payment by debtor directly to creditor of assessee through banking channel

Lion Mercantile P. Ltd. Vs ITO (ITAT Mumbai) Section 40A(3) is undisputedly anti tax avoidance provision to check evasion of taxes and to discourage movement of funds exceeding monetary limits specified in Section 40A(3) in the economy otherwise than through the prescribed modes of payments viz. account payee cheques or account payees drafts or the use of electronic clearing system through a bank account with a view to discourage movements of funds of large magnitude otherwise than through prescribed and approved banking channels in order to check evasion of taxes . The Section 40A(3) only sti...