S. 40A(3) Cash Payment allowable if necessary to ensure smooth functioning of business

HIGH COURT OF DELHI R.C. Goel versus Commissioner of Income-tax IT APPEAL NO. 636 OF 2012 DECEMBER 4, 2012 ORDER S. Ravindra Bhat, J. – Issue Notice. Mr. N.P. Sahni, Sr. Standing Counsel accepts notice on behalf of Revenue. 2. ADMIT. With consent of counsel for the parties, the appeal is heard finally. 3. The question of law which arises for consideration in this case is “whether the ITAT erred in confirming the disallowance of expenditure to the tune of Rs.27,48,860/- made by the AO under Section 40A(3)?” 4. The brief facts of the case are that the assessee ...