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2016 (2) TMI 1098 - AT - Income TaxGrant of deductions under section 40A(3) - Held that:- In the present case, detailed submissions with corroborative evidences were filed before the lower authorities including that of the AO as well as the learned CIT (Appeals). The elaborate submissions were made to prove that the expenses incurred in cash were genuine which were paid to the seller for purchase of land and there were practical expediency because of which the payments have to be made in cash. This is an undisputed fact. The payee has given an affidavit which was filed before the Assessing Officer as well whereby he affirmed the fact that he does not have any bank account. These facts have not been conroverted by AO nor the learned CIT (Appeals) and the party was identifiable. He was of the view that the assessee is required to prove that due to exceptional and unavoidable circumstances as provided under the Rules, the payments were made in cash. Therefore, it is not a case of the Department that the payments so made in cash were not genuine. The reasons given by the assessee at every stage have not been disbelieved. The payments cannot be disallowed under section 40A(3) of the Act. The addition is deleted. - Decided in favour of assessee.
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