Section 40A(3) Disallowance Fails Without Proof of Split Cash: ITAT Chennai

Kuppusamy Thankaraj Vs ITO (ITAT Chennai) ITAT Chennai Deletes ₹77.95 Lakh Disallowance Under Section 40A(3): No Proof of Split Cash Payments The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) allowed the assessee’s appeal for AY 2018-19 and deleted the disallowance of ₹77.94 lakh made under section 40A(3) in respect of cash payments for purchase of firewood. The Assessing Officer had alleged that the assessee deliberately split lump-sum cash payments into amounts not exceeding ₹10,000 per day per person to circumvent section 40A(3) read with Rule 6DD, and accordingly treate...