Cash payments to Kerala Electricity Board not hit by section 40A(3): ITAT Cochin

Victply Industries Vs ITO (ITAT Cochin) Victply Industries, a partnership firm, filed its return of income for AY 2015-16 declaring nil income after setting off brought forward depreciation loss of ₹1,25,649. The return was scrutinised & the AO completed the assessment u/s 143(3) determining the total income at ₹14,32,070. The entire difference arose due to the AO’s disallowance of ₹14,32,070 u/s 40A(3), holding that electricity charges paid in cash to the Kerala Electricity Board (KEB) violated the provision restricting cash payments above the prescribed limit. Before CIT(A), Asse...