Genuineness irrelevant while disallowing expenses – Section 40A(3)

Advertisement Vaduganathan Talkies Vs ITO (Madras High Court) Facts- Assessing Officer disallowed the expenses under section 40A(3) on account of cash payment exceeding INR 20,000. Against the same, the assessee tried to prove the genuineness of the transaction. Accordingly, the assessee submitted list containing the payment made in cash to various parties. Those parties were identifiable and assessee also produced letters from the parties accepting receipt of money in cash. Revenue contented that the assessee has not been able to bring their case under any one of the exceptional circumstan...