https://www.taxtmi.com/caselaws?id=245841 The ITAT upheld the CIT(A)'s decision to delete additions made by the AO for material purchases and under section 40A(3) of the IT Act for the appellant engaged in fabrication and erection work. The expenses were deemed necessary for business purposes as they were minimal compared to contract earnings and allowed under the agreement terms. The ITAT also supported the deletion of the addition under section 40A(3) due to the appellant's requirement to make cash payments at a remote location without banking facilities, in line with Rule 6DD(g) of the Income Tax Rules, 1962. The Revenue's appeal was rejected on all grounds. en-us Fri, 04 Apr 2014 00:00:00 +0530 Wed, 09 Apr 2014 10:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=245841 The ITAT upheld the CIT(A)'s decision to delete additions made by the AO for material purchases and under section 40A(3) of the IT Act for the appellant engaged in fabrication and erection work. The expenses were deemed necessary for business purposes as they were minimal compared to contract earnings and allowed under the agreement terms. The ITAT also supported the deletion of the addition under section 40A(3) due to the appellant's requirement to make cash payments at a remote location without banking facilities, in line with Rule 6DD(g) of the Income Tax Rules, 1962. The Revenue's appeal was rejected on all grounds. Case-Laws Income Tax Fri, 04 Apr 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=245841