https://www.taxtmi.com/caselaws?id=332175 ITAT Indore held that cash payments for land purchase were covered by the recognised exception to section 40A(3) because they were supported by documents, affidavits and business necessity, and the land cost was only carried in closing stock with no P&L claim. It further held that the alleged bogus purchases could not be disallowed on suspicion alone where part of the purchases had been accepted and no material proved the transactions bogus or inflated. The Tribunal also deleted the section 68 addition of unsecured loans and the related interest disallowance, noting that confirmations, PAN, returns, bank statements and repayment evidence had been furnished and the primary burden had been discharged. en-us Thu, 14 Jul 2016 00:00:00 +0530 Mon, 12 Sep 2016 17:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=332175 ITAT Indore held that cash payments for land purchase were covered by the recognised exception to section 40A(3) because they were supported by documents, affidavits and business necessity, and the land cost was only carried in closing stock with no P&L claim. It further held that the alleged bogus purchases could not be disallowed on suspicion alone where part of the purchases had been accepted and no material proved the transactions bogus or inflated. The Tribunal also deleted the section 68 addition of unsecured loans and the related interest disallowance, noting that confirmations, PAN, returns, bank statements and repayment evidence had been furnished and the primary burden had been discharged. Case-Laws Income Tax Thu, 14 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=332175