Section 40A(3) additions not justified when demand draft amount credited to bank account although not crossed

M. K. Agrotech Private Ltd. Vs ACIT (Karnataka High Court)

The main purpose of crossing a demand draft is to ensure that the payment is cleared by means of an account, i.e., the payment is deposited in the Bank Account i.e the person in whose favour the demand draft has been drawn. It ensures the payee receives the payment and it is routed through bank In the facts of this case, both have been proved. The Bank report would indicate that demand drafts were admittedly not crossed. However, the payments were credited into the accounts of t

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