https://www.taxtmi.com/caselaws?id=34419 The Court dismissed the appeal, affirming the decisions of the lower authorities regarding the interpretation of Section 40A(3) of the Income Tax Act. It was held that no disallowance under Section 40A(3) could be made when payments exceeding Rs.20,000 were made in cash due to business expediency, as per the proviso allowing exceptions based on relevant factors. The Court found the assessee's conduct justified under considerations of business expediency, specifically in the context of purchases from a quasi-Government entity. The judgment clarifies the application of the section in cases necessitating cash payments for genuine business reasons. en-us Tue, 18 Aug 2009 00:00:00 +0530 Fri, 28 Aug 2009 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=34419 The Court dismissed the appeal, affirming the decisions of the lower authorities regarding the interpretation of Section 40A(3) of the Income Tax Act. It was held that no disallowance under Section 40A(3) could be made when payments exceeding Rs.20,000 were made in cash due to business expediency, as per the proviso allowing exceptions based on relevant factors. The Court found the assessee's conduct justified under considerations of business expediency, specifically in the context of purchases from a quasi-Government entity. The judgment clarifies the application of the section in cases necessitating cash payments for genuine business reasons. Case-Laws Income Tax Tue, 18 Aug 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=34419