Held that since assessee could not make out a case of business exigency and other relevant factors which compelled him to make payment through bearer cheques and further his claim that payment was made through agent was not substantiated, no exceptions could be made out from proviso to section 40A(3) and, hence, findings by lower authorities is upheld. (AY. 2019-20)
B. Saravanan v. ITO (2023) 200 ITD 755/222 TTJ 898/ 224 DTR 97 (Chennai) (Trib.)
S. 40A(3) :Expenses or payments not deductible-Cash payments exceeding prescribed limits-Bearer cheques-Payments to agent not substantiated-Failure to show reasonable cause-Disallowance is held to be proper.[R.6DD(k)]