Tribunal held that only notional entries were made for purpose of matching unaccounted sales discovered during search .Disallowance is held to be not justified . (AY.2005-06, 2006-07 )
Floorings v. ITO (2018) 64 ITR ( SN) 34 (Pune) (Trib)/Bhikshu Granimart v. Dy.CIT (2018) 64 ITR 34 (SN)(Pune)(Trib.)
S. 40A(3) :Expenses or payments not deductible – Cash payments exceeding prescribed limits –Survey – cash purchases reported in the financial statements, i. e., notional entries made for the purpose of matching the unaccounted sales discovered during the search actions –No disallowance can be made by applying the provision of S.40A(3)[ S.133A]