https://www.taxtmi.com/caselaws?id=775742 The ITAT upheld the addition under section 40A(3) for cash payments beyond permissible limits, rejecting the assessee's claim of genuine business expenses due to lack of substantiation and improper timing of payment. The addition under section 2(22)(e) for advance salary to a director was deleted, as the provision does not apply to the assessee-company. The addition under section 41(1) relating to credit balances shown as liabilities and adjusted against sales was also deleted, as conditions for invoking the section were not met. However, the disallowance of interest expenditure under section 36(1)(iii) was sustained, since the assessee had sufficient own funds and the interest related mainly to a car loan used to fund interest-free advances. en-us Mon, 28 Jul 2025 00:00:00 +0530 Wed, 30 Jul 2025 08:21:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775742 The ITAT upheld the addition under section 40A(3) for cash payments beyond permissible limits, rejecting the assessee's claim of genuine business expenses due to lack of substantiation and improper timing of payment. The addition under section 2(22)(e) for advance salary to a director was deleted, as the provision does not apply to the assessee-company. The addition under section 41(1) relating to credit balances shown as liabilities and adjusted against sales was also deleted, as conditions for invoking the section were not met. However, the disallowance of interest expenditure under section 36(1)(iii) was sustained, since the assessee had sufficient own funds and the interest related mainly to a car loan used to fund interest-free advances. Case-Laws Income Tax Mon, 28 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775742