No Section 40A(3) disallowance if Bank Account was Not Operational due to Attachment

PCIT Vs Sumukha Synthetics (Madras High Court)

The issue under consideration is whether the disallowance under Section 40A(3) of the Act as made by the Assessing Officer is sustainable under Income Tax Act?

High Court states that, in the instant case, banking facility was available but the bank account could not be operated by the very bank themselves because of an order of attachment passed by the ESI Department. M/s.SLM virtually came to the assessee with the begging bow

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