https://www.taxtmi.com/caselaws?id=18370 The High Court of GAUHATI upheld the decision of the Commissioner of Income-tax (Appeals) in deleting a disallowance under section 40A(3) of the Income-tax Act, 1961, amounting to Rs. 6,36,979.33 due to exceptional circumstances justifying the payments. However, the Court ruled that verification of entries in the payee's books of account alone was insufficient to warrant deletion of the remaining disallowance. The Court emphasized the necessity of establishing exceptional circumstances for cash payments exceeding Rs. 2,500 in addition to verifying book entries. en-us Fri, 07 Jun 1996 00:00:00 +0530 Wed, 30 Sep 2009 14:02:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18370 The High Court of GAUHATI upheld the decision of the Commissioner of Income-tax (Appeals) in deleting a disallowance under section 40A(3) of the Income-tax Act, 1961, amounting to Rs. 6,36,979.33 due to exceptional circumstances justifying the payments. However, the Court ruled that verification of entries in the payee's books of account alone was insufficient to warrant deletion of the remaining disallowance. The Court emphasized the necessity of establishing exceptional circumstances for cash payments exceeding Rs. 2,500 in addition to verifying book entries. Case-Laws Income Tax Fri, 07 Jun 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18370