2019 (2) TMI 1214 - SCH - Income Tax

Addition u/s 40A(3) - disallowance of cash payments which have to be compulsorily made by the assessee in view of absence of banking facilities at the place of payment - HELD THAT - In view of Circular No. 3 of 2018 dated 11 July 2018 issued by the Central Board of Direct Taxes and the tax effect being less than Rs one crore we dismiss the Special Leave Petitions only on this ground.

Summary

The Supreme Court dismissed the Special Leave Petitions due to the tax effect being less than Rs one crore, citing Circular No. 3 of 2018. The question of law remains open.