Genuine expenditure paid in cash cannot be disallowed u/s 40A(3)

Issue before court: Whether expenditure paid in cash, which is not disallowed u/s 37 (1), can be disallowed under section 40A(3). Whether provision of section 54F are applicable where nature of property turned into commercial purpose. Brief facts: Assessee is a non-resident individual. He filed return of income declaring income of Rs. 4,61,77,622/- after claiming deduction u/s. 54F. The income mainly consists of Long Term Capital Gains on sale of land and Short Term Capital Gains on sale of building. AO was of the opinion that assessee indulged in adventure in nature of trade in constructin...