https://www.taxtmi.com/caselaws?id=63162 The Tribunal allowed the appeals, ruling in favor of the assessee and rejecting the disallowances under section 40A(3) of the IT Act. The Tribunal found the cash payments exceeding Rs. 2,500 towards purchases from a government undertaking were justified due to business exigencies and the need for swift deliveries, considering the nature of transactions and practical difficulties in obtaining bank drafts. The Tribunal emphasized that failure to allow cash payments would unreasonably tax the assessee's income, highlighting the exceptional circumstances warranting the deviation from the statutory requirement. en-us Fri, 25 Mar 1988 00:00:00 +0530 Fri, 28 Jan 2011 11:37:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=63162 The Tribunal allowed the appeals, ruling in favor of the assessee and rejecting the disallowances under section 40A(3) of the IT Act. The Tribunal found the cash payments exceeding Rs. 2,500 towards purchases from a government undertaking were justified due to business exigencies and the need for swift deliveries, considering the nature of transactions and practical difficulties in obtaining bank drafts. The Tribunal emphasized that failure to allow cash payments would unreasonably tax the assessee's income, highlighting the exceptional circumstances warranting the deviation from the statutory requirement. Case-Laws Income Tax Fri, 25 Mar 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=63162