https://www.taxtmi.com/caselaws?id=213863 The High Court held that under Section 40A(3) of the Income Tax Act, individual transactions not exceeding Rs. 2,500 should not be disallowed even if the total cash payment exceeds Rs. 20,000. The Court clarified that the provision applies to payments made at a time and not the aggregate payments during the day. Emphasizing that the amendment was prospective, the Court ruled in favor of the assessee, rejecting the revenue's argument against fragmented payments exceeding Rs. 20,000 in a day. en-us Thu, 03 May 2012 00:00:00 +0530 Sat, 09 Jun 2012 07:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=213863 The High Court held that under Section 40A(3) of the Income Tax Act, individual transactions not exceeding Rs. 2,500 should not be disallowed even if the total cash payment exceeds Rs. 20,000. The Court clarified that the provision applies to payments made at a time and not the aggregate payments during the day. Emphasizing that the amendment was prospective, the Court ruled in favor of the assessee, rejecting the revenue's argument against fragmented payments exceeding Rs. 20,000 in a day. Case-Laws Income Tax Thu, 03 May 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=213863