https://www.taxtmi.com/caselaws?id=465234 ITAT Kolkata partly allowed the assessee's appeal. It held that cash payments for purchase of raw jute from cultivators/producers fall within the exception under Rule 6DD(e)(i), as raw jute remains agricultural produce despite retting or minimal processing. Accordingly, disallowance u/s 40A(3) was sustained only for purchases routed through three brokers, where payments were not made directly to farmers, and deleted for the remaining parties. Consequentially, the addition on account of sundry (bogus) creditors was deleted, since purchases and corresponding sales were accepted and only identity of farmers was doubted. However, disallowance of employees' PF contribution deposited beyond the statutory due date was upheld in view of the SC ruling in Checkmate Services. en-us Thu, 27 Jun 2024 00:00:00 +0530 Wed, 10 Dec 2025 15:10:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=465234 ITAT Kolkata partly allowed the assessee's appeal. It held that cash payments for purchase of raw jute from cultivators/producers fall within the exception under Rule 6DD(e)(i), as raw jute remains agricultural produce despite retting or minimal processing. Accordingly, disallowance u/s 40A(3) was sustained only for purchases routed through three brokers, where payments were not made directly to farmers, and deleted for the remaining parties. Consequentially, the addition on account of sundry (bogus) creditors was deleted, since purchases and corresponding sales were accepted and only identity of farmers was doubted. However, disallowance of employees' PF contribution deposited beyond the statutory due date was upheld in view of the SC ruling in Checkmate Services. Case-Laws Income Tax Thu, 27 Jun 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=465234