https://www.taxtmi.com/caselaws?id=791114 Cash payments for land purchases supported by cash books, ledger accounts and registered sale deeds cannot be disallowed merely on suspicion where payments are recorded in parts and no effective opportunity is given to address adverse material. The section 40A(3) disallowance was therefore deleted. Bank cash deposits explained through opening cash balance, recorded cash receipts, withdrawals, cash book entries and bank statements cannot be treated as unexplained cash credits without proper confrontation of contrary material. The section 68 addition was also deleted. Contemporaneous books and supporting records, coupled with adherence to natural justice, are essential before adverse additions for cash transactions can be sustained. en-us Tue, 28 Apr 2026 00:00:00 +0530 Wed, 06 May 2026 08:32:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791114 Cash payments for land purchases supported by cash books, ledger accounts and registered sale deeds cannot be disallowed merely on suspicion where payments are recorded in parts and no effective opportunity is given to address adverse material. The section 40A(3) disallowance was therefore deleted. Bank cash deposits explained through opening cash balance, recorded cash receipts, withdrawals, cash book entries and bank statements cannot be treated as unexplained cash credits without proper confrontation of contrary material. The section 68 addition was also deleted. Contemporaneous books and supporting records, coupled with adherence to natural justice, are essential before adverse additions for cash transactions can be sustained. Case-Laws Income Tax Tue, 28 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791114