Disallowance of Expenses u/s 40A(3) for Cash Payments Over Rs. 20,000 in Coal Procurement Disputed.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Disallowance of expenses u/s 40A(3) - ertain payments in excess of ₹ 20,000/- by cash - The assessee was bound to procure the coal to keep the furnace going to sustain the production. Therefore, procurement of coal against cash payment was a business necessity. Further, the assessee has also paid CST on purchases and the C-Form issued to the supplier is also produced before the lower authorities. - Freight inward expenses find the same is mainly related to purchase of coal. - AT....