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2023 (7) TMI 991 - ITAT JABALPURRevision u/s 263 - Disallowance u/s. 40A(3) for payments below Rs. 20,000/- and further the payments had been made towards purchase of cement which did not attract any liability to deduct tax at source - HELD THAT:- Section 40A(3) of the Act, as it stood prior to amendment by the Finance Act, 2017, which came into effect from 01.04.2018, specifies that where the assessee had incurred any expenditure in respect of which a payment or aggregate of payments made to a person in a day otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds Rs. 20,000/-, no deduction shall be allowed in respect of such expenditure. From the assessment order, it is very clear that in the present case no payment in cash exceeding Rs. 20,000/- had been made. Therefore, the Assessing Officer has wrongly invoked the provisions of Section 40A(3) of the Act and accordingly, the same cannot be sustained. We set aside the order of the NFAC and direct the Assessing Officer to delete the addition. Decided in favour of assessee
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