https://www.taxtmi.com/caselaws?id=768495 The HC held that cash payments exceeding Rs.20,000 for procurement of milk products by a city-based distributor from a company engaged in pasteurisation do not qualify for exemption under Rule 6DD of Section 40A(3). The term "producer" in the Rule refers strictly to dairy farmers, not companies processing milk. The court emphasized that both parties had access to banking facilities, and no valid reason was shown for cash transactions. The objective of Section 40A(3) to discourage large cash payments was upheld, and the exceptions under Rule 6DD were interpreted narrowly. The addition under Section 40A was confirmed, ruling in favor of the revenue. en-us Thu, 07 Nov 2024 00:00:00 +0530 Mon, 04 Aug 2025 15:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=768495 The HC held that cash payments exceeding Rs.20,000 for procurement of milk products by a city-based distributor from a company engaged in pasteurisation do not qualify for exemption under Rule 6DD of Section 40A(3). The term "producer" in the Rule refers strictly to dairy farmers, not companies processing milk. The court emphasized that both parties had access to banking facilities, and no valid reason was shown for cash transactions. The objective of Section 40A(3) to discourage large cash payments was upheld, and the exceptions under Rule 6DD were interpreted narrowly. The addition under Section 40A was confirmed, ruling in favor of the revenue. Case-Laws Income Tax Thu, 07 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=768495