TMI Blog2006 (1) TMI 61X X X X Extracts X X X X X X X X Extracts X X X X ..... all not be allowed as deduction. It does not say that the aggregate of the amount should not exceed Rs. 2,500. The words used are "in a sum", i.e., single sum has been used. Therefore, irrespective of any number of transactions, where the amount does not exceed Rs. 2,500 as above, the rigours of section 40A(3) will not apply. Now, the amount should not exceed Rs. 20,000. That apart, practicability of the payment has also to be judged from the point of view of a businessman - - - - - Dated:- 25-1-2006 - Judge(s) : P. D. DINAKARAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J. - The above tax case appeal is directed against the order of the Income-tax Appellate Tribunal in I.T.A. No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in certain circumstances. - (1) ... (3) Where the assessee incurs any expenditure in respect of which payment is made, after such date (not being later than the 31st day of March, 1969) as may be specified in this behalf by the Central Government by notification in the Official Gazette in a sum exceeding twenty thousand rupees otherwise than by a crossed cheque drawn on a bank or by a crossed bank draft, twenty per cent, of such expenditure shall not be allowed as a deduction: Provided that where an allowance has been made in the assessment for any year not being an assessment year commencing prior to the 1st day of April, 1969, in respect of any liability incurred by the assessee for any expenditure and subsequently during any previou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red the said question in favour of the Revenue. But, concededly, the facts and circumstances of the said case are with reference to the payment made in cash for each item of expenditure involved in a single bill, but not with reference to the payment of cash made for several bills for several transactions, as in the instant case. Therefore, the decision cited supra is, in no way, helpful to the case of the appellant. In the instant case, it is not in dispute that the perusal of the cash book of the assessee reveals that cash payments were made in respect of each invoice separately and the payments were not made separately for each item of the same invoice. One such issue came up for consideration before the Madhya Pradesh High Court in CI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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