Court held that the Tribunal was right in holding that the payments made by the assessee in cash exceeding Rs. 10,000 could not be disallowed by applying section 40A(3) as they were paid in exceptional circumstances. The findings on the issues were based on proper appreciation of evidence on record and were neither perverse nor arbitrary. ( AY.1995-96)
CIT(LTU) v. Asea Brown Boveri Ltd. (2020) 427 ITR 166 / 192 DTR 376/272 Taxman 224 (Karn)(HC)
S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits -Payments made in exceptional circumstances — Payments not disallowable [ R.6DD ]