https://www.taxtmi.com/caselaws?id=24909 Whether cash payments for purchase of smuggled goods fall within the rule 6DD(j) exception to section 40A(3) was decided on the basis that only payments satisfying rule 6DD clauses can dispense with section 40A(3). The court required the assessee to prove genuine difficulty in complying with section 40A(3), together with the genuineness of the payment and the identity of the payee; failure to satisfy these requirements precludes the exception, resulting in disallowance of the business expenditure. The court also noted that taxable treatment of confiscated goods and possible redetermination of taxable income by the tribunal should proceed on existing record. en-us Thu, 08 Oct 1987 00:00:00 +0530 Wed, 14 Jan 2026 12:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24909 Whether cash payments for purchase of smuggled goods fall within the rule 6DD(j) exception to section 40A(3) was decided on the basis that only payments satisfying rule 6DD clauses can dispense with section 40A(3). The court required the assessee to prove genuine difficulty in complying with section 40A(3), together with the genuineness of the payment and the identity of the payee; failure to satisfy these requirements precludes the exception, resulting in disallowance of the business expenditure. The court also noted that taxable treatment of confiscated goods and possible redetermination of taxable income by the tribunal should proceed on existing record. Case-Laws Income Tax Thu, 08 Oct 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24909