No section 40A(3) disallowance for cash payment for land on sellers demand

Monika Chitrasen Patil Vs ITO (ITAT Pune) Introduction: The case of Monika Chitrasen Patil Vs ITO (ITAT Pune) offers significant insights into the interpretation of tax laws concerning cash payments in property transactions. As the appellant challenged the disallowance of Rs.21,33,333/- u/s. 40A(3) of the Act, the case’s resolution provides vital guidance on the nuances of the tax laws in such situations. Analysis: In this case, the assessee, engaged in the business of buying and selling agricultural lands, had made cash payments as part of the sale consideration to sellers who didn̵...