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2010 (3) TMI 901 - AT - Income TaxDisallowance under section 40A(3) of the Income-tax Act - being 20 per cent. of Rs. 25,21,700 payments made in cash – Held that:- Statutory limit of payment under section 40A(3) of the Act applies to each payment and not to the aggregate of the payments made to a party in the course of the day - When the genuineness of the transportation work done and the payment made for such work as a whole is not doubted - there is no justification to ignore the self made vouchers by which the payment is made - As per the self-made voucher, payment was below Rs. 20,000 at a time, in respect of such payment - disallowance made under section 40A(3) of the Act deleted Disallowance of parking expenses incurred – Held that:- Assessee could not give any satisfactory explanation as to why the assessee made the payment of parking expenses when the trucks were owned by others and not by the assessee - no justification could be given for making such payment only at the Chennai branch when no such payment is being made at the head office or other branches - claim of truck expenses is only on notional basis, i.e., on the basis of per trip and not on the basis of actual parking expenses incurred by the truck owner – disallowance upheld
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