Payment made in cash for purchase from local producers either directly or through their agents and disallowance of expense u/s. 40A(3)

RELEVANT PARAGRAPH 9. We have considered the rival submissions and perused the material on record. In our considered view, there is no case for interfering in the order of the Id. Commissioner (Appeals). So far as addition u/s 40A(3) is concerned, the undisputed facts are that assessee has purchased raw hides/skins for the purposes of manufacturing leather and leather products from local producers either directly or through their agents. Even though the Assessing Officer issued letters to various producers and some of these have come back unserved but it does not prove that the producers of th...