https://www.taxtmi.com/caselaws?id=400852 The Tribunal ruled in favor of the appellant, a partnership firm, in an appeal against a rectification order under section 154 of the Income Tax Act related to cash transactions under section 40A(3). The Tribunal found that the cash payments were made out of business expediency due to the firm's newness in the field and lack of creditworthiness. Emphasizing the importance of proving commercial necessity, the Tribunal quashed the disallowance under section 40A(3) and allowed the appeal, citing judicial precedents supporting cash payments for business expediency under Rule 6DD(j) of the Income Tax Rules. en-us Wed, 18 Nov 2020 00:00:00 +0530 Fri, 20 Nov 2020 13:39:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=400852 The Tribunal ruled in favor of the appellant, a partnership firm, in an appeal against a rectification order under section 154 of the Income Tax Act related to cash transactions under section 40A(3). The Tribunal found that the cash payments were made out of business expediency due to the firm's newness in the field and lack of creditworthiness. Emphasizing the importance of proving commercial necessity, the Tribunal quashed the disallowance under section 40A(3) and allowed the appeal, citing judicial precedents supporting cash payments for business expediency under Rule 6DD(j) of the Income Tax Rules. Case-Laws Income Tax Wed, 18 Nov 2020 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=400852