Disallowance u/s 40A (3) for aggregate cash payments of more than Rs. 20,000 in a single day to one person is applicable w.e.f. 01/04/2009

Brief of the Case ITAT Amritsar held In the case of M/s. Pardeep Singh Wazir vs. The DCIT that Circular no. 1/2009, dated 27th March, 2009 issued by CBDT is effective from 01/04/2009 i.e. for the assessment year 2009-10 onwards. As this case belongs to AY 2007-08, this circular is not applicable on current case. It is clear that the assessee was at liberty to pay to a single person any number of times in a day provided that each payments must be below Rs.20,000/-. There is no dispute that payments were found to be recorded in cash book which were less than Rs. 20,000/-. Therefore, from the abo...