ITAT allows deduction for Cash Payments via deposit in suppliers bank account

Om Balaji Stores Vs ITO (ITAT Chennai) Introduction: In a recent ruling, the Income Tax Appellate Tribunal (ITAT) Chennai delivered its verdict in the case of Om Balaji Stores vs. ITO. The appeal, arising from the assessment for the year 2016-17, contested the disallowance under section 40A(3) concerning cash payments to suppliers exceeding the specified limit. Detailed Analysis: The crux of the matter was the alleged violation of Section 40A(3) by Om Balaji Stores, a resident firm engaged in the textile business. The company had made cash payments to various suppliers, attracting disallowance...