Provisions of section 40A(3) doesn’t apply to payment made to a cottage industry

DCIT Vs Smt. A. Gandhimathi (ITAT Chennai) ITAT Chennai held that payment towards purchase of wet grinders and accessories were mainly made to a cottage industry and accordingly such payment is not hit by the provisions of section 40A(3) as payment made to a cottage industry is excluded under rule 6DD(F) of the Income Tax Rules. Facts- The assessment of the assessee was completed u/s.143(3) by making addition of Rs.33,52,296/-. Thereafter, a search and seizure operation u/s.132 of the Act, was conducted in the case of M/s.Butterfly Gandhimathi Appliances Ltd. (M/s. BGAL) and during the course ...