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2018 (5) TMI 899 - AT - Income TaxAddition u/s 40A(3) - payments of expenditure in cash exceeding permeable limits - as argued that the payments to statutory bodies do not attract the provisions of section 40A(3) and the payments were made in cash as per the demand of BSNL - proof of business expediency - Held that:- As payments made to BSNL were not doubted by the Revenue and it is proved that BSNL is a State within Article 12 of the Constitution of India and moreover as per Demand Note issued by BSNL, payments were made in cash for the business expediency of the assessee and as per requirement specified by BSNL. Under these circumstances, even if the assessee does not fall in any of the clause of Rule 6DD, invoking the provisions of section 40A(3) can be dispensed with. In view of the above discussion, we set aside the order of the ld. CIT(A) and delete the addition made under section 40A(3) of the Act. - Decided in favour of assessee.
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