ITAT Upholds CIT(A) Order deleting Section 40A(3) ₹12.92 Cr Addition

Rajeshbhai Naranbhai Patel Vs ACIT (ITAT Ahmedabad) In the case of Rajeshbhai Naranbhai Patel vs. ACIT, the Income Tax Appellate Tribunal (ITAT) Ahmedabad upheld the order of the Commissioner of Income Tax (Appeals) [CIT(A)], which deleted a ₹12.92 crore addition made by the Assessing Officer under Section 40A(3) of the Income Tax Act. The dispute arose from the revenue’s claim that payments exceeding ₹20,000 were made in cash for agricultural produce that was allegedly not cultivated by the sellers. The CIT(A) concluded that the purchases were valid and supported by documents such a...