Assessee is mainly engaged in the machinery import and sales, besides undertaking AMC works. Payments have been made towards service charges and the payment made on one occasion did not exceed the prescribed limit of Rs.20,000/- applicable to the year under consideration. Assessee has furnished all the vouchers to the tax authorities. The tax authorities are not justified in invoking the provisions of S.40A(3) of the Act without verifying the relevant facts. (ITA No. 3552/M/2023, 08/03/2024) (AY. 2014-15)
Avinash Kumar Ojha v. ITO (Mum.) (Trib.)(UR)
S. 40A(3) : Expenses or payments not deductible – Cash payments exceeding prescribed limits – The tax authorities are not justified in invoking the provisions of S. .40A(3) of the Act without verifying the relevant facts.