Cash payments permissible if assessee can justify necessity & genuineness: ITAT Indore

ITO Vs Ishan Township Pvt. Ltd. (ITAT Indore) The case of ITO Vs Ishan Township Pvt. Ltd. (ITAT Indore) focuses on the disallowance of cash payments exceeding a certain limit under Section 40A(3) of the Income Tax Act. Section 40A(3) generally disallows such payments unless they meet the conditions outlined in Rule 6DD, which considers business expediency and the absence of banking facilities. According to the Supreme Court ruling in Attar Singh Gurumukh Singh vs. ITO, Section 40A(3) should not be interpreted in isolation but in conjunction with Rule 6DD, ensuring the provision does not hinder...