https://www.taxtmi.com/caselaws?id=246241 For purposes of section 40A(3)(a) of the Income-tax Act, payment must be made by an account payee cheque or account payee bank draft; a crossed cheque routed through shroffs does not satisfy that statutory mode. The provision was amended to tighten traceability and prevent endorsement of crossed instruments, and the commercial meaning of an account payee cheque is that it can be credited only to the payee's account. The genuineness of the underlying purchases does not override this mandatory payment requirement, and disallowance follows where the prescribed mode is not used. en-us Tue, 01 Apr 2014 00:00:00 +0530 Fri, 10 Oct 2014 16:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=246241 For purposes of section 40A(3)(a) of the Income-tax Act, payment must be made by an account payee cheque or account payee bank draft; a crossed cheque routed through shroffs does not satisfy that statutory mode. The provision was amended to tighten traceability and prevent endorsement of crossed instruments, and the commercial meaning of an account payee cheque is that it can be credited only to the payee's account. The genuineness of the underlying purchases does not override this mandatory payment requirement, and disallowance follows where the prescribed mode is not used. Case-Laws Income Tax Tue, 01 Apr 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=246241