Section 40A(3): Calcutta HC allows cash Payments to Labourers Under Rs. 20,000

SK. Jaynal Abddin Vs CIT (Calcutta High Court) The case of SK. Jaynal Abddin vs. CIT presented a crucial question regarding the applicability of Section 40A(3) of the Income Tax Act concerning payments made to labourers. T The appellant, engaged in embroidery and stitching business, made payments to labourers through supervisors, with each payment not exceeding Rs. 20,000. However, the assessing officer invoked Section 40A(3) due to non-compliance with certain statutory requirements. The CIT(A) overturned the assessment order, recognizing the supervisors as employees of the appellant and empha...