Dismissing the appeal the Court held that that the Commissioner (Appeals) considered the legal issue and found that, what was purchased was undoubtedly a fish or fish product, which would fall within the scope of rule 6DD(f)(iii) and if it were so, no disallowance under clause (a) of sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under clause (b) of sub-section (3) of section 40A. (AY.2002-03)
CIT v. Ayshwarya Sea Food Pvt. Ltd. (2022) 441 ITR 171 (Mad.)(HC)
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Fish or fish products-Order of Tribunal is affirmed. [R. 6DD(f)(iii)]