Cash Payments not claimed as expenditure cannot be disallowed U/s. 40A(3)

ACIT Vs Jasmine Buildtech (P) Ltd. (ITAT Delhi) Question of disallowance under section 40A(3) of Income Tax Act, 1961  would not arise, where assessee had not claimed the payments as expenditure, while computing its business income. Assessee-Company bought the land on behalf of its group company and whatever payment was made to land owners or their relatives for purchase of land was debited to the account of said company. AO disallowed the said expenditure under section 40A(3). However, assessee submitted that no disallowance could be made by AO, being the said payments were reimbursements fo...