Section 40A(3) Disallowance for Cash Freight Payments Within ₹35,000 Quashed; WhatsApp Chats Insufficient

DCIT Vs Greyforce Industries Limited (ITAT Kolkata) Section 40A(3) Disallowance on Freight Payments Set Aside: Cash Paid to Truck Drivers Within ₹35,000 Limit and WhatsApp Chats Cannot Sustain Addition The Kolkata Bench of the ITAT dismissed the Revenue’s appeal and upheld the CIT(A)’s order deleting disallowances aggregating to ₹3.93 crore made during survey proceedings for AY 2023-24. On the principal issue, the Tribunal held that the Assessing Officer wrongly invoked Section 40A(3) by treating freight payments as having been made to transporters in excess of ₹35,000 per day. The e...