https://www.taxtmi.com/caselaws?id=773278 The ITAT Indore upheld disallowance under Section 40A(3) for cash payment exceeding prescribed limits in land purchase by a private limited construction company. The tribunal rejected the assessee's argument that genuine transactions are exempt from Section 40A(3), clarifying that this provision applies to otherwise genuine transactions made in cash beyond statutory limits. The court distinguished the Achal Alloy case, noting it involved specific business exigency with illiterate payees lacking bank accounts. The tribunal also dismissed the argument that no expenditure was incurred merely because land remained in closing stock, holding that debiting purchases to profit and loss account constitutes expenditure regardless of stock treatment. en-us Mon, 09 Jun 2025 00:00:00 +0530 Fri, 20 Jun 2025 08:34:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=773278 The ITAT Indore upheld disallowance under Section 40A(3) for cash payment exceeding prescribed limits in land purchase by a private limited construction company. The tribunal rejected the assessee's argument that genuine transactions are exempt from Section 40A(3), clarifying that this provision applies to otherwise genuine transactions made in cash beyond statutory limits. The court distinguished the Achal Alloy case, noting it involved specific business exigency with illiterate payees lacking bank accounts. The tribunal also dismissed the argument that no expenditure was incurred merely because land remained in closing stock, holding that debiting purchases to profit and loss account constitutes expenditure regardless of stock treatment. Case-Laws Income Tax Mon, 09 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=773278