https://www.taxtmi.com/caselaws?id=779181 ITAT, Lucknow allowed the appeal and quashed the AO's disallowance under s.40A(3) read with Rule 6DD. The partnership firm proved identity of sellers, linked cash payments to same-day bank withdrawals, and showed business expediency (sellers' insistence on cash), so the payments were bona fide. Relying on SC and HC authority, the Tribunal held s.40A(3) and Rule 6DD are not to be applied rigidly where explanation is satisfactory, and the AO erred in disallowing without proving the explanation false. en-us Fri, 19 Sep 2025 00:00:00 +0530 Tue, 30 Sep 2025 08:30:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779181 ITAT, Lucknow allowed the appeal and quashed the AO's disallowance under s.40A(3) read with Rule 6DD. The partnership firm proved identity of sellers, linked cash payments to same-day bank withdrawals, and showed business expediency (sellers' insistence on cash), so the payments were bona fide. Relying on SC and HC authority, the Tribunal held s.40A(3) and Rule 6DD are not to be applied rigidly where explanation is satisfactory, and the AO erred in disallowing without proving the explanation false. Case-Laws Income Tax Fri, 19 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779181