No section 40A(3) Disallowance for cash payment by agents

Gouri Shankar Jain Vs CIT(A) (ITAT Kolkata) Introduction: In the case of Gouri Shankar Jain vs CIT(A), the dispute centers around the disallowance of Rs. 69,500 under Section 40A(3) of the Income Tax Act. The disallowed amount pertains to cash expenditures exceeding Rs. 20,000 for repairs, specifically Rs. 34,500 for body-making charges on 12.10.2012 and Rs. 35,000 for alternator repairing works on 08.01.2013. The crux of the matter lies in the assertion that these payments were made by the driver, acting as an agent of the assessee. Detailed Analysis: The Assessing Officer (AO) disallowed the...