https://www.taxtmi.com/highlights?id=104588 Cash-payment disallowance under section 40A(3) requires verified foundational facts: payments exceeding the prescribed limit to a particular payee on a particular day, supported by examination of books, vouchers and potential Rule 6DD exceptions. Assumptions about abnormal profit rates cannot replace those statutory conditions, so unsupported disallowances cannot be sustained. Where a civil contractor's books are unverifiable and unreliable, the first appellate authority's co-terminous powers permit rejection of books under section 145(3) and estimation of business income. Treating a potential profit result as independently making section 40A(3) inapplicable is legally unsound, but does not invalidate a properly supported book rejection and income estimation. en-us Tue, 06 Oct 2026 08:13:52 +0530 Tue, 06 Oct 2026 08:13:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=104588 Cash-payment disallowance under section 40A(3) requires verified foundational facts: payments exceeding the prescribed limit to a particular payee on a particular day, supported by examination of books, vouchers and potential Rule 6DD exceptions. Assumptions about abnormal profit rates cannot replace those statutory conditions, so unsupported disallowances cannot be sustained. Where a civil contractor's books are unverifiable and unreliable, the first appellate authority's co-terminous powers permit rejection of books under section 145(3) and estimation of business income. Treating a potential profit result as independently making section 40A(3) inapplicable is legally unsound, but does not invalidate a properly supported book rejection and income estimation. Highlights Income Tax Tue, 06 Oct 2026 08:13:52 +0530 https://www.taxtmi.com/highlights?id=104588