https://www.taxtmi.com/caselaws?id=771302 ITAT Cochin allowed the assessee's appeal, deleting the disallowance under section 40A(3) for cash payments made for capital asset purchases. The tribunal held that section 40A(3) provisions apply only to revenue expenditure claimed as deductions under commercial accounting, not capital expenditure. Additionally, the second proviso to section 43, which could have applied to capital expenditure, was effective only from assessment year 2018-2019 and not applicable to the relevant assessment year 2015-2016. en-us Fri, 16 May 2025 00:00:00 +0530 Fri, 23 May 2025 08:46:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771302 ITAT Cochin allowed the assessee's appeal, deleting the disallowance under section 40A(3) for cash payments made for capital asset purchases. The tribunal held that section 40A(3) provisions apply only to revenue expenditure claimed as deductions under commercial accounting, not capital expenditure. Additionally, the second proviso to section 43, which could have applied to capital expenditure, was effective only from assessment year 2018-2019 and not applicable to the relevant assessment year 2015-2016. Case-Laws Income Tax Fri, 16 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771302