Section 40A(3) disallowance cannot be made by invoking Section 154 provisions

Smt. Poonam Mittal Vs ITO (ITAT Amritsar) We find that the AO had invoked his powers u/s.154 of the Act for disallowing u/s.40A(3) of the Act the assessee’s claim for deduction of bonus of Rs.2,47,380/- that was stated to have been paid in cash, i.e., in excess of the prescribed limit of Rs.20,000/-. In our considered view, as stated by the AR, and rightly so, the disallowance of an amount u/s.40A(3) by no means can be brought within the realm of a mistake which could be held as being in the nature of a mistake which is glaring, patent, apparent and obvious from record, therein rendering the...