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Business Necessity Justifies Cash Payments: ITAT Deletes Section 40A(3) Addition
Case Law Details
- Case Name
- Yash Infratech Vs ACIT (ITAT Lucknow)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2015-16
- Courts
- All ITAT, ITAT Lucknow
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Yash Infratech Vs ACIT (ITAT Lucknow)
Section 40A(3) Not Absolute – Business Expediency Justifies Cash Payments- Tribunal Cites SC & HC Precedents to Delete Addition
Assessee, engaged in real estate business, had purchased three properties worth Rs. 27,34,800/- during the year, making payments in cash. AO disallowed the entire amount u/s 40A(3) holding that cash payments above prescribed limits were impermissible. CIT(A) confirmed the disallowance.
Before Tribunal, Assessee contended that the purchases formed part of closing stock & no deduction was claimed, hence s.40A(3) could no...
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