Business Necessity Justifies Cash Payments: ITAT Deletes Section 40A(3) Addition

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...