https://www.taxtmi.com/caselaws?id=11900 The High Court dismissed the appeal filed by the Commissioner of Income-tax, Central-I, Chennai, regarding the disallowance of expenditure under section 40A(3) of the Income-tax Act. The Court upheld the lower authorities' decision to allow the deduction of expenditure, finding that the respondent-assessee had provided a reasonable explanation for the cash payments for raw materials purchased. The Court determined that the requirements of rule 6DD(j) were satisfied in this case, emphasizing the genuineness of the transactions and the specific circumstances of the business justifying cash purchases. en-us Thu, 17 Oct 2002 00:00:00 +0530 Sun, 02 May 2010 23:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11900 The High Court dismissed the appeal filed by the Commissioner of Income-tax, Central-I, Chennai, regarding the disallowance of expenditure under section 40A(3) of the Income-tax Act. The Court upheld the lower authorities' decision to allow the deduction of expenditure, finding that the respondent-assessee had provided a reasonable explanation for the cash payments for raw materials purchased. The Court determined that the requirements of rule 6DD(j) were satisfied in this case, emphasizing the genuineness of the transactions and the specific circumstances of the business justifying cash purchases. Case-Laws Income Tax Thu, 17 Oct 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11900