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2009 (8) TMI 48 - HC - Income TaxPayment exceeding Rs. 20,000 in cash – business expediency' - disallowance – In the case on hand, the Tribunal has noted that the payments were made at the insistence of the Sugar Mill from where the purchases were made by the assessee. Purchases were said to have been made from the District Co-operative Sugar Mill, which is a quasi Government concern, and the payments were also made in the branches of the co-operative banks which were located in the concerned Co-operative Sugar Mill. In such circumstances, the conduct of the assessee in having deposited the payment in cash in the branches located in the Co-operative Sugar Mill at the insistence of the concerned Sugar Mill will squarely fall under the expression 'considerations of business expediency'. – expenses allowed despite the fact that that payment was made in excess of Rs. 20000 in cash.
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