Cash Payment not disallowable u/s 40A(3) if Genuineness proved: ITAT

Cash Payment not disallowable u/s 40A(3) if Genuineness proves: ITAT


judgement on section 40A(3)

The following judgment perfectly elaborates the fact that section 40A(3) was introduced as anti tax measure. If genuineness of the payment is established, there is no point in invoking the provision of section 40A(3). It may be noted that the limit of Rs. 20,000/- per day payment is now reduced to Rs. 10,000/- per day by the Finance Act-2017. Further, the scope of section 40A(3) is now even extended to capital assets also on which the Assessee claim Depreciation. (judgement on section 40A(3))

The judgment of Nagpur ITAT is produced hereunder:
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