Dismissing the appeal of the revenue the Court held that the payment of cash was made to villagers for purchase of land as stock in trade . Villagers were paid the amount in cash in the absence of banking facilities deletion of addition was held to be justified
CIT v. Ace India Abodes Ltd. (2018) 162 DTR 118 (Raj)(HC)
S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits -20% expenditure -Purchase of land as stock in trade -Villagers paid the amount in cash in the absence of banking facilities deletion of addition was held to be justified [ R.6DD(h)]