Section 40A(3) disallowance not applies to cash advance for property purchase

ACIT Vs Sanskar Homes Pvt. Ltd. (ITAT Delhi) Income Tax Appellate Tribunal (ITAT), Delhi, has dismissed two appeals filed by the revenue against separate orders, both dated May 23, 2016, passed by the Commissioner of Income-tax(Appeals)-39, New Delhi, for the Assessment Years 2009-10 and 2010-11. These appeals contested the deletion of additions made by the Assessing Officer (AO) under Section 40A(3) of the Income-tax Act, 1961, amounting to ₹2.16 crore and ₹66,25,500 respectively, for cash payments exceeding the prescribed limit. The assessee, Sanskar Homes Pvt. Ltd., engaged in the busin...