https://www.taxtmi.com/caselaws?id=37187 The High Court held that the statutory limit under section 40A(3) of the Income-tax Act applies to individual payments made at a time, not the total expenditure in a day. The Court ruled in favor of the assessee firm, finding that since no single payment exceeded Rs. 2,500, the limit did not apply. Additionally, the Court accepted the firm's explanation that cash payments were due to agents' demands, falling under the exception of rule 6DD(j) of the Income-tax Rules. The judgment emphasizes the practical interpretation of tax provisions and the importance of considering exceptional circumstances in such cases. en-us Tue, 18 Dec 1979 00:00:00 +0530 Sat, 27 Mar 2010 11:50:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37187 The High Court held that the statutory limit under section 40A(3) of the Income-tax Act applies to individual payments made at a time, not the total expenditure in a day. The Court ruled in favor of the assessee firm, finding that since no single payment exceeded Rs. 2,500, the limit did not apply. Additionally, the Court accepted the firm's explanation that cash payments were due to agents' demands, falling under the exception of rule 6DD(j) of the Income-tax Rules. The judgment emphasizes the practical interpretation of tax provisions and the importance of considering exceptional circumstances in such cases. Case-Laws Income Tax Tue, 18 Dec 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37187