https://www.taxtmi.com/caselaws?id=12092 The Court upheld the constitutional validity of section 40A(3) of the Income-tax Act, 1961, which allows for a 20 per cent. disallowance of expenditure exceeding Rs. 20,000 if payments are made in cash. The Court emphasized that the amendment to the rule did not affect the validity of the statute previously upheld by the Supreme Court. It noted that the new rules provided exceptions for certain types of payments made in cash and ensured transparency in transactions by requiring payments through account payee cheques or demand drafts where banking services were available. The Court dismissed the challenge to the validity of section 40A(3, affirming its constitutionality. en-us Fri, 20 Dec 2002 00:00:00 +0530 Sun, 02 May 2010 23:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12092 The Court upheld the constitutional validity of section 40A(3) of the Income-tax Act, 1961, which allows for a 20 per cent. disallowance of expenditure exceeding Rs. 20,000 if payments are made in cash. The Court emphasized that the amendment to the rule did not affect the validity of the statute previously upheld by the Supreme Court. It noted that the new rules provided exceptions for certain types of payments made in cash and ensured transparency in transactions by requiring payments through account payee cheques or demand drafts where banking services were available. The Court dismissed the challenge to the validity of section 40A(3, affirming its constitutionality. Case-Laws Income Tax Fri, 20 Dec 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12092