No Section 40A(3) disallowance, if cash payment for purchase of agricultural land was due to commercial expediency

Prime Infra Developers (P) Ltd. Vs ITO (ITAT Delhi)

Conclusion: Disallowance under section 40A(3) with respect to cash payment made by assessee to farmers on Sunday for purchase of agricultural land could not be disallowed as Sunday was bank holiday and rule 6D(J)  was clearly attracted in assessee’s case as payment was made due to commercial expediency.

Held: Assessee-company had made advance payment for purchase of various lands to farmers as a token money for the execution of th

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