https://www.taxtmi.com/caselaws?id=28329 The High Court of Madras clarified the interpretation of Section 40A(3) of the Income Tax Act, 1961, ruling that the provision applies when a payment exceeding Rs. 2,500 is made in cash for business purposes, regardless of individual items on a bill. The Court rejected the Tribunal's approach of considering each expenditure item separately and upheld the disallowance of cash payments exceeding the threshold. The Department was awarded costs, including counsel fees. en-us Wed, 06 Oct 1982 00:00:00 +0530 Sat, 20 Feb 2010 13:41:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=28329 The High Court of Madras clarified the interpretation of Section 40A(3) of the Income Tax Act, 1961, ruling that the provision applies when a payment exceeding Rs. 2,500 is made in cash for business purposes, regardless of individual items on a bill. The Court rejected the Tribunal's approach of considering each expenditure item separately and upheld the disallowance of cash payments exceeding the threshold. The Department was awarded costs, including counsel fees. Case-Laws Income Tax Wed, 06 Oct 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=28329