https://www.taxtmi.com/caselaws?id=39368 The High Court of Allahabad upheld the disallowance of cash payments exceeding Rs. 2,500 for purchases made by a registered firm engaged in the iron and hardware business for the assessment year 1970-71. The court emphasized that such payments must be made by crossed cheque or bank draft as per section 40A(3) of the Income-tax Act, 1961, to prevent the use of unaccounted money in business transactions. The court ruled in favor of the department, supporting the disallowance of the cash payments and awarding costs to the department. en-us Tue, 11 Nov 1975 00:00:00 +0530 Fri, 16 Apr 2010 10:36:11 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39368 The High Court of Allahabad upheld the disallowance of cash payments exceeding Rs. 2,500 for purchases made by a registered firm engaged in the iron and hardware business for the assessment year 1970-71. The court emphasized that such payments must be made by crossed cheque or bank draft as per section 40A(3) of the Income-tax Act, 1961, to prevent the use of unaccounted money in business transactions. The court ruled in favor of the department, supporting the disallowance of the cash payments and awarding costs to the department. Case-Laws Income Tax Tue, 11 Nov 1975 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39368