Disallowance u/s 40A(3) sustainable as cash payment exceeds INR 20,000 to single party in single day

Kalimuthu Harichandran Vs ACIT (ITAT Chennai) ITAT Chennai held that disallowance u/s 40A(3) of the Income Tax Act sustainable as aggregate of the payments made to a single party otherwise by an account payee cheque drawn on a bank or account payee bank draft exceeds Rs.20,000/-in a day. Facts- AO during the course of assessment proceedings, while examining the books of accounts noted that the assessee has made cash payment in excess of Rs.20,000/- for purchase of dhall and oil. The assessee confirmed to have made cash purchases in excess of Rs.20,000/- to a single person in a single day in re...