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Provision of section 40A(3) doesn’t apply when payment for expenses are made by a person to an agent
Case Law Details
- Case Name
- Piprani Equipment P. Ltd. Vs ITO (ITAT Ahmedabad)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2015-16
- Courts
- All ITAT, ITAT Ahmedabad
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Piprani Equipment P. Ltd. Vs ITO (ITAT Ahmedabad)
ITAT Ahmedabad held that clause (k) of Rule 6DD specifies that where payment for expenses are made by a person to an agent who is required to make payment in cash on behalf of such person, then rigours of section 40A(3) are not applicable.
Facts-
A.O. observed that the assessee had made payment in cash exceeding the limit specified u/s 40(A)(3) of the Act on purchase of five old vehicles/JCB Machines on various dates.
A.O. held that since the payments to these persons were made in cash and in violation of the provisions of sect...
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