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2013 (12) TMI 1114 - ITAT DELHIDisallowance u/s 40A(3) – Cash payment for purchase of land - Held that:- The assessee has made payment to various villagers for purchase of agricultural land - Normally farmers would insist on cash payments, specially when such payments involve huge amounts for the simple reason that they would like to avoid the risk of receiving cash at the town where the sale deed is to be registered before sub-registrar and which may be far way from the sellers' village – Perusal of the second proviso to s. 40A(3) shows that the object of the legislature is not to make disallowance of genuine cash payments which have to be compulsorily made by the assessee in view of absence of banking facilities at the place of payment - The assessee made cash payment to the agricultural land seller villagers which are covered under second proviso to section 40A(3) of Rule 6DD(h) of the Rules – Decided in favour of assessee.
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