https://www.taxtmi.com/caselaws?id=754907 ITAT Delhi allowed the appeal of a milk distributor against disallowance under Section 40A(3) for cash payments exceeding Rs. 20,000. The assessee received milk products from a cooperative supplier and distributed through sub-distributors with cash collections deposited through banking channels. The tribunal held that combined reading of Rule 6DD clauses (f) and (1) exempted the transaction from Section 40A(3) restrictions, as payments included both product price and commission, making the payee an agent required to pay the company in cash. The disallowance was deleted, favoring the assessee. en-us Thu, 20 Jun 2024 00:00:00 +0530 Tue, 02 Jul 2024 12:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754907 ITAT Delhi allowed the appeal of a milk distributor against disallowance under Section 40A(3) for cash payments exceeding Rs. 20,000. The assessee received milk products from a cooperative supplier and distributed through sub-distributors with cash collections deposited through banking channels. The tribunal held that combined reading of Rule 6DD clauses (f) and (1) exempted the transaction from Section 40A(3) restrictions, as payments included both product price and commission, making the payee an agent required to pay the company in cash. The disallowance was deleted, favoring the assessee. Case-Laws Income Tax Thu, 20 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754907