S. 40A(3) No disallowance for cash payments made to ‘Broker’ who makes cash payments on behalf of the assessee

In the instant case, the AO observed that the assessee has made cash payments for freight charges to brokers, which was in excess of the limit prescribed under section 40A(3) of the Act. He, therefore, by invoking the provisions of section 40A(3) of the Act, made disallowance of Rs. 9,286/- for A.Y.2007-2008, Rs. 5,34,973/- for A.Y.2008-2009 Rs. 11,96,342/- for A.Y.2009- 2010 and for A.Y. 2010- 2001 Rs. 1,23,044/-. On appeal, the learned CIT(A) has confirmed the action of the AO, on the ground that the entire freight charges from customers have been included in

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