TaxTMI 
TaxTMI 
Section 40A(3) of the Income-tax Act, 1961--Rule 6DD(j) of the Income-tax Rules, 1962--Clarification regarding
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.... Subject: Section 40A(3) of the Income-tax Act, 1961--Rule 6DD(j) of the Income-tax Rules, 1962--Clarification regarding. Sir, Clause (j) of rule 6DD of the Income-tax Rules, 1962, provides that no disallowance under section 40A(3) of the Income-tax Act, 1961, shall be made where the assessee satisfies the Income-tax Officer that the payment could not be made by way of a crossed cheque drawn....
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....tioned in (a) and (b) above if he claims that no disallowance should be made under section 40A(3) of the Income-tax Act, 1961. 3. Various representations have been received by the Board regarding the difficulties that are being experienced by the taxpayers due to lack of uniformity in the interpretation of the provisions of rule 6DD(j) of the Income-tax Rules, 1962, by the Income-tax Officers. ....
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....is particular seller; or (v) The seller, acting as a commission agent, is required to pay cash in turn to persons from whom he has purchased the goods; or (vi) Specific discount is given by the seller for payment to be made by way of cash. 5. It can be said that it would generally satisfy the requirements of rule 6DD(j), if a letter to the above effect is produced in respect of each trans....