https://www.taxtmi.com/caselaws?id=445062 The Delhi HC upheld disallowance of deductions under Section 40A(3) for purchases made without account payee cheques. The assessee produced undated confirmations with identical language, raising doubts about transaction genuineness. The court found that even accepting the assessee's explanation as a new business entrant, payments could have been made through banking channels like bank drafts. The Tribunal's factual finding that confirmations were produced only before CIT(A) was not challenged. The HC concluded that payments violated Section 40A(3) requirements, and the assessee failed to establish transaction genuineness, justifying the disallowance. en-us Tue, 03 Oct 2023 00:00:00 +0530 Fri, 03 May 2024 10:48:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445062 The Delhi HC upheld disallowance of deductions under Section 40A(3) for purchases made without account payee cheques. The assessee produced undated confirmations with identical language, raising doubts about transaction genuineness. The court found that even accepting the assessee's explanation as a new business entrant, payments could have been made through banking channels like bank drafts. The Tribunal's factual finding that confirmations were produced only before CIT(A) was not challenged. The HC concluded that payments violated Section 40A(3) requirements, and the assessee failed to establish transaction genuineness, justifying the disallowance. Case-Laws Income Tax Tue, 03 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445062