https://www.taxtmi.com/caselaws?id=456935 The Telangana HC upheld disallowance under Section 40A(3) for cash payments exceeding Rs. 20,000 made to two companies for purchasing dairy products. The court ruled that these companies, being intermediaries who processed milk into cream rather than actual cultivators/growers/producers, did not qualify for exemption under Rule 6DD(f)(ii). The assessee's practice of splitting payments into smaller amounts to avoid the Rs. 20,000 threshold was deemed ineffective. The HC affirmed the Tribunal's decision supporting the assessing officer and CIT(A)'s disallowance, ruling in favor of revenue. en-us Wed, 09 Nov 2022 00:00:00 +0530 Thu, 29 Aug 2024 10:35:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=456935 The Telangana HC upheld disallowance under Section 40A(3) for cash payments exceeding Rs. 20,000 made to two companies for purchasing dairy products. The court ruled that these companies, being intermediaries who processed milk into cream rather than actual cultivators/growers/producers, did not qualify for exemption under Rule 6DD(f)(ii). The assessee's practice of splitting payments into smaller amounts to avoid the Rs. 20,000 threshold was deemed ineffective. The HC affirmed the Tribunal's decision supporting the assessing officer and CIT(A)'s disallowance, ruling in favor of revenue. Case-Laws Income Tax Wed, 09 Nov 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=456935