https://www.taxtmi.com/caselaws?id=71763 Payments by bearer cheque for genuine purchases were treated as falling within the exceptions to section 40A(3) because the payee's identity was established and the seller refused crossed cheques or crossed demand drafts. Evidence of market shortage and cash-against-delivery practice supported the application of rule 6DD. The assessing authority was also bound by Circular No. 220 dated 31 May 1977, which exempted such payments from the rigour of section 40A(3). On that basis, the disallowance was deleted. en-us Fri, 28 Oct 1983 00:00:00 +0530 Tue, 26 Apr 2011 18:37:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71763 Payments by bearer cheque for genuine purchases were treated as falling within the exceptions to section 40A(3) because the payee's identity was established and the seller refused crossed cheques or crossed demand drafts. Evidence of market shortage and cash-against-delivery practice supported the application of rule 6DD. The assessing authority was also bound by Circular No. 220 dated 31 May 1977, which exempted such payments from the rigour of section 40A(3). On that basis, the disallowance was deleted. Case-Laws Income Tax Fri, 28 Oct 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71763