Tax Case: Cash Payments to Transporters Disallowed u/s 40A(3) Without Examining Farmers' Claims or Rule 6DD(e) Evidence.

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....Disallowance u/s 40A(3) - payment to transporters in cash - The assessee has demonstrated before the authorities below that the payments were made for purchase of agricultural produce. On the other hand, there is no evidence on record to conclude that the questioned payments do not come within the ambit of rule 6DD(e) of the Income Tax Rules. Even the AO did not examine the concerned farmers or sought their explanation to verify the contention of the assessee. - AT....