Disallowance U/S 40A(3) not Possible if transaction genuine & cash payment done on Seller’s Insistence

DCIT Vs M/s. Brilliant Sare Reality Pvt. Ltd. (ITAT Indore) Conclusion: When cash payment was done on insistence of the seller, amount was duly recorded in the sale deed and no doubt was raised with regard to the genuineness of the transaction, disallowance u/s 40A(3) not justifiable. FACTS – In February, 2009 search was initiated against M/s. Zoom and the documents of the assesses was found. In connection to the same, on 15.12.2009 notice u/s 153C was issued to the assesses.  Assesses challenged the legality of proceedings initiated against them u/s 153C. In the said year, the assessee had...