ITAT Deletes ₹6.55 Lakh Section 40A(3) Addition for Capital Asset Payments

Julius Ruben Vs ACIT (ITAT Cochin) Income Tax Appellate Tribunal (ITAT), Cochin Bench, has set aside a disallowance of ₹6,55,605 made under Section 40A(3) of the Income-tax Act, 1961, in the case of Julius Ruben vs. Assistant Commissioner of Income-tax (ACIT) for the assessment year 2015-2016. The Tribunal ruled that the provisions of Section 40A(3) are not applicable to cash payments made for the acquisition of capital assets when no revenue deduction has been claimed. The case originated from a rectification order passed by the Assessing Officer (AO) under Section 154 of the Act. The asses...