Bombay HC Admits Appeal on Cash Payment Disallowance u/s 40A(3)

PCIT Vs Laukik Paper Industries Pvt. Ltd (Bombay High Court) The case of PCIT Vs Laukik Paper Industries Pvt. Ltd. involves an appeal admitted by the Bombay High Court on October 4, 2025, concerning the deletion of an addition made under Section 40A(3) of the Income Tax Act, 1961. This section mandates the disallowance of expenditure exceeding a specified limit (formerly ) if paid in cash. The High Court admitted two substantial questions of law. The first questions whether the Income Tax Appellate Tribunal (ITAT) was correct in deleting the disallowance by relying on the judicial precedent ...