No banking facility in village- Cash Payment to Truck Driver allowable

New Kalpana Ent Udyog Vs ITO (ITAT Agra)

The assessee firm is engaged in the business of running a brick kiln where coal is used as a primary fuel. As per the Ld. A.R. coal is supplied to these brick kilns by agents of the coal supplier at the brick kiln itself and these agents ask for cash payments, as they have to make the payment to the truck drivers for the fare as well as for the coal amount to their principals. The auditors in their tax audit report have also not mentioned of any violation of provisions of section 40A(3), as these payments

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