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2013 (12) TMI 959 - AT - Income TaxPayment excedding Rs.20,000 made through crossed cheque - Violation of Section 40A(3) - Held that:- As per the Circular issued by the CBDT refers to the instructions issued by the Reserve bank of India to the banks in which the difference between a crossed cheque and account payee cheque has been brought out - Payments made by a crossed cheque cannot be considered as payment by account payee cheque. Law requires payments to be made by an account payee cheque and not by a crossed cheque - Section 40A(3) is neither subject to any reasonable cause nor to any exception. Once payment exceeding Rs. 20,000/- is shown to have been made otherwise than by account payee cheque drawn on a bank or account payee bank draft, the expenditure in respect of which such payment has been made cannot be allowed as deduction - All the conditions for the applicability of section 40A(3) are fully satisfied - Decided against assessee.
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