| |
| The Tax Publishers2020 TaxPub(DT) 3719 (Karn-HC) : (2020) 428 ITR 0186 : (2021) 277 TAXMAN 0169 INCOME TAX ACT, 1961
Section 40A(3)
Since the place at which cash payment to agriculturists/farmers for purchase of land was made in excess of prescribed limit, had banking facility, therefore, assessee's case was not covered in the exception clause as provided under section 40A(3) read with rule 6DD and, therefore, AO was justified in making disallowance.
|
Business disallowance under section 40A(3) - Cash payment in excess of prescribed limit - Payments made by assessee to agriculturists/farmers for purchase of land - Place, at which payment was made, had banking facility
AO by applying section 40A(3) disallowed cash payments made by assessee to agriculturists/farmers for purchase of land. Assessee took the stand that transaction took place at the place where there were no banking facilities. Held: Since AO found that the place, at which payment was made, had banking facility ,therefore, assessee's case was not covered in the exception clause as provided under section 40A(3) read with rule 6DD and, therefore, AO was justified in making disallowance.
REFERRED :
FAVOUR : Against the assesse
A.Y. : 2006-07
IN THE KARNATAKA HIGH COURT
 SUBSCRIBE FOR FULL CONTENT
|