Section 40A(3) not applies to cash payments deposited in bank account of payee

Abhishek Saha Vs ACIT (ITAT Kolkata)

ITAT Kolkata held that provisions of section 40A(3) of the Income Tax Act doesn’t apply to cash payments when ultimately the amount is deposited in the bank account of the payee.

Facts- The brief facts of the case were that the assessee was a proprietor of M/s. K D Pharma, which was engaged in the business of distribution of wholesale lines of medicines.

Assessee contended disallowance made u/s 40A(3) of the Act of Rs.1,22,97,4

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