https://www.taxtmi.com/caselaws?id=775735 The ITAT Delhi allowed the assessee's appeal, holding that the cash payment of Rs. 30 lakhs for property purchase was genuine and made due to the seller's insistence, constituting business expediency. The tribunal upheld that Section 40A(3) disallowance is not absolute and must consider the transaction's bona fide nature and relevant factors. Reliance was placed on Supreme Court and HC decisions affirming that such payments, when genuine and necessary, do not warrant disallowance. Consequently, the disallowance under Section 40A(3) was not sustained. en-us Wed, 23 Jul 2025 00:00:00 +0530 Wed, 30 Jul 2025 08:21:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=775735 The ITAT Delhi allowed the assessee's appeal, holding that the cash payment of Rs. 30 lakhs for property purchase was genuine and made due to the seller's insistence, constituting business expediency. The tribunal upheld that Section 40A(3) disallowance is not absolute and must consider the transaction's bona fide nature and relevant factors. Reliance was placed on Supreme Court and HC decisions affirming that such payments, when genuine and necessary, do not warrant disallowance. Consequently, the disallowance under Section 40A(3) was not sustained. Case-Laws Income Tax Wed, 23 Jul 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=775735