No section 40A(3) Disallowance for cash payment to Agricultural Land Seller on his insistence

Geo Connect Ltd Vs DCIT (ITAT Delhi)

The factual matrix reveal that the assessee is in real estate business and for that purpose it purchased an agricultural land from one Sh. Ugma, an old man of 75 years. Towards sale consideration of the said land, the assessee issued bearer cheques for an amount of Rs. 1,06,50,000/- to the seller. It is the stand of the assessee from the stage of assessment proceeding itself that the seller of the agricultural land made a pre­condition of payment of cash for registration of sale deed. Si

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