https://www.taxtmi.com/caselaws?id=25630 The Tribunal held that payments exceeding Rs. 2,500 for purchases contravened the mandatory provisions of Section 40A(3) of the Income-tax Act, 1961. The court rejected the argument that the term "expenditure" excludes purchases, affirming that purchases fall within the scope of Section 40A(3). Despite the assessee's reliance on Rule 6DD(j) and circulars, the court found no valid justification for cash payments exceeding Rs. 2,500. The court upheld the mandatory nature of Section 40A(3) and ruled in favor of the Revenue, emphasizing the need to prove exceptional circumstances for deviations from the rule. en-us Sat, 20 Sep 1986 00:00:00 +0530 Fri, 29 Jan 2010 18:11:08 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25630 The Tribunal held that payments exceeding Rs. 2,500 for purchases contravened the mandatory provisions of Section 40A(3) of the Income-tax Act, 1961. The court rejected the argument that the term "expenditure" excludes purchases, affirming that purchases fall within the scope of Section 40A(3). Despite the assessee's reliance on Rule 6DD(j) and circulars, the court found no valid justification for cash payments exceeding Rs. 2,500. The court upheld the mandatory nature of Section 40A(3) and ruled in favor of the Revenue, emphasizing the need to prove exceptional circumstances for deviations from the rule. Case-Laws Income Tax Sat, 20 Sep 1986 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25630