https://www.taxtmi.com/caselaws?id=215503 The Tribunal ruled in favor of the assessee, holding that the cash payments made to South Western Railway for scrap purchases were exempt from disallowance under Section 40A(3) of the Income-tax Act. The Tribunal found that the payments qualified as 'legal tender' under Rule 6DD(b) of the Income-tax Rules, as the railway authority required cash payments as per auction conditions. Therefore, the Tribunal allowed the appeal, overturning the decision of the Commissioner of Income-tax (Appeals) and deleting the disallowance of Rs. 73,91,380. en-us Fri, 30 Mar 2012 00:00:00 +0530 Tue, 07 Aug 2012 12:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=215503 The Tribunal ruled in favor of the assessee, holding that the cash payments made to South Western Railway for scrap purchases were exempt from disallowance under Section 40A(3) of the Income-tax Act. The Tribunal found that the payments qualified as 'legal tender' under Rule 6DD(b) of the Income-tax Rules, as the railway authority required cash payments as per auction conditions. Therefore, the Tribunal allowed the appeal, overturning the decision of the Commissioner of Income-tax (Appeals) and deleting the disallowance of Rs. 73,91,380. Case-Laws Income Tax Fri, 30 Mar 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=215503