https://www.taxtmi.com/caselaws?id=786478 Challenge concerned disallowance of director remuneration on basis that cash payments exceeded the statutory single day cash limit under the Income tax Act; records showed monthly salary liabilities with cash components of Rs.20,000 and remaining paid by cheque, with no single day cash payment exceeding the limit. Reopening of assessment occurred via notice process but substantive question turned on applicability of the single day cash payment restriction to director salaries. Applying that factual and legal test, the earlier disallowance of Rs.4,80,000 was found unsupported and deleted, resulting in relief for the taxpayer. en-us Tue, 03 Feb 2026 00:00:00 +0530 Fri, 13 Feb 2026 09:18:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786478 Challenge concerned disallowance of director remuneration on basis that cash payments exceeded the statutory single day cash limit under the Income tax Act; records showed monthly salary liabilities with cash components of Rs.20,000 and remaining paid by cheque, with no single day cash payment exceeding the limit. Reopening of assessment occurred via notice process but substantive question turned on applicability of the single day cash payment restriction to director salaries. Applying that factual and legal test, the earlier disallowance of Rs.4,80,000 was found unsupported and deleted, resulting in relief for the taxpayer. Case-Laws Income Tax Tue, 03 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786478