No section 40A(3) disallowance for non-maintenance of books by supplier

Fazal Frozen Food (P) Ltd. Vs JCIT (ITAT Delhi)

Ld. Counsel for the assessee pleaded that the disallowance is being made on the ground that the payments are being made in cash and higher than Rs.20,000/-. They are entered in the books Rs.20,000/- per transaction. He submitted that the assessee’s books have not been faulted and the same have not been rejected. If the suppliers did not maintain books of account, the assessee could not be faulted for that and disallowance cannot be made in the hands of the assessee.

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