https://www.taxtmi.com/caselaws?id=295404 The revenue appealed against the CIT(A)'s decision to delete the disallowance under section 40A(3) for cash payments exceeding Rs. 20,000 without verification. The Tribunal upheld the CIT(A)'s decision, emphasizing that direct cash deposits into suppliers' bank accounts do not violate Sec. 40A(3) as they ensure traceability and prevent misuse of unaccounted funds. The case was remanded to the AO for further examination of additional evidence regarding direct bank deposits. Ultimately, the revenue's appeal was allowed for statistical purposes, with the legal principle established in a previous case supporting the decision. en-us Fri, 02 Nov 2012 00:00:00 +0530 Wed, 02 Jun 2021 10:03:21 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=295404 The revenue appealed against the CIT(A)'s decision to delete the disallowance under section 40A(3) for cash payments exceeding Rs. 20,000 without verification. The Tribunal upheld the CIT(A)'s decision, emphasizing that direct cash deposits into suppliers' bank accounts do not violate Sec. 40A(3) as they ensure traceability and prevent misuse of unaccounted funds. The case was remanded to the AO for further examination of additional evidence regarding direct bank deposits. Ultimately, the revenue's appeal was allowed for statistical purposes, with the legal principle established in a previous case supporting the decision. Case-Laws Income Tax Fri, 02 Nov 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=295404