https://www.taxtmi.com/caselaws?id=17900 The High Court ruled against the Revenue and in favor of the assessee in a case concerning the disallowance made under section 40A(3) of the Income-tax Act, 1961. The Court held that the Tribunal erred in upholding the disallowance of cash payments exceeding Rs. 2,500 without considering the business exigencies and security concerns. Emphasizing the need to interpret "exceptional and unavoidable circumstances" under rule 6DD(j) in light of practical business considerations, the Court concluded that the provisions aim to deter frivolous payments, not complicate genuine transactions. en-us Tue, 17 Dec 1996 00:00:00 +0530 Fri, 25 Sep 2009 15:14:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=17900 The High Court ruled against the Revenue and in favor of the assessee in a case concerning the disallowance made under section 40A(3) of the Income-tax Act, 1961. The Court held that the Tribunal erred in upholding the disallowance of cash payments exceeding Rs. 2,500 without considering the business exigencies and security concerns. Emphasizing the need to interpret "exceptional and unavoidable circumstances" under rule 6DD(j) in light of practical business considerations, the Court concluded that the provisions aim to deter frivolous payments, not complicate genuine transactions. Case-Laws Income Tax Tue, 17 Dec 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=17900