https://www.taxtmi.com/caselaws?id=14306 The Supreme Court dismissed the appeal challenging the Tribunal's decision on the applicability of the second proviso to section 40A(3) of the Income-tax Act, 1961, resulting in the deletion of a disallowance amounting to Rs. 14,58,691. The Court emphasized that the requirement of payment by crossed cheque or bank draft is not absolute, allowing for consideration of business expediency and other relevant factors. Genuine transactions are not excluded, and the assessee can explain circumstances hindering compliance with the prescribed payment method. The appeal was dismissed as no substantial question of law was found based on the Court's interpretation. en-us Mon, 22 Jan 2001 00:00:00 +0530 Wed, 15 Jul 2009 11:30:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=14306 The Supreme Court dismissed the appeal challenging the Tribunal's decision on the applicability of the second proviso to section 40A(3) of the Income-tax Act, 1961, resulting in the deletion of a disallowance amounting to Rs. 14,58,691. The Court emphasized that the requirement of payment by crossed cheque or bank draft is not absolute, allowing for consideration of business expediency and other relevant factors. Genuine transactions are not excluded, and the assessee can explain circumstances hindering compliance with the prescribed payment method. The appeal was dismissed as no substantial question of law was found based on the Court's interpretation. Case-Laws Income Tax Mon, 22 Jan 2001 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=14306