Direct cash deposit in suppliers bank a/c not attract disallowance u/s 40A (3)

Brief of the case:

• The ITAT Kolkata in the above cited case held that the consequence, which were to be fall on  account of non-observation of section 40A(3) must have nexus to the failure of object of introducing of the provision. Therefore, no disallowance can be made if the transactions do not defeat the object of Sec 40A(3) in as much as there genuiness is not challenged and they can be tracked end to end.
• Therefore

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