The Tribunal held that the assessee had made payment in cash exceeding Rs. 20,000 to the three parties. The assessee had taken different stands before the Assessing Officer and the Commissioner (Appeals). Nothing was produced to substantiate that the suppliers had demanded cash and refused to accept demand draft or pay order or account payee cheque for the goods. The assessee had only made a general remark that due to business exigencies it had to purchase the coal from the suppliers. Since the business exigency was not backed by any documentary evidence to prove the commercial exigency and demand from the suppliers to supply coal only against payment in cash and since the assessee had violated the provisions of section 40A(3) , the addition was justified. ( AY.2010-11)