2024 (3) TMI 890 - SCH - Income Tax

Addition u/s 40A(3) - purchases made otherwise than by account payee cheque - As decided by HC 2023 (10) TMI 1285 - DELHI HIGH COURT payments made by the assessee to the concerns violated Section 40A(3) as they were not made through an account payee cheque drawn on a bank account payee bank draft or through the use of electronic clearing system through a bank account and therefore to fall within the ambit of the 1977 circular the appellant/assessee was required to establish the genuineness of the transactions. The appellant/assessee having failed to do so led to the deduction being rightly disallowed for the subject payments. HELD THAT - We are not inclined to interfere with the impugned judgment and order passed by the High Court. Hence the Special Leave Petition is dismissed. Decided against assessee.

Summary

The Supreme Court dismissed the Special Leave Petition and did not interfere with the impugned judgment and order passed by the High Court. The delay was condoned, and pending applications were disposed of.