The assessee was engaged in the business of tours, travels and related activities in and out of India. On the ground that the assessee had made cash payments exceeding Rs.20,000, the Assessing Officer invoked the provisions of section 40A(3) and disallowed deduction of the payments. The CIT (A) confirmed the addition. On appeal, the Tribunal held that the payments had been made in the non-banking hours in the late evening and over the weekend where hotel bookings were urgently required and hotel staff refused to accept cheques. Similarly, certain payments were made to persons where each payment was below Rs.20,000. Since the AO had not properly considered the factual aspects and had concluded that the assessee had violated the provisions of S.40A(3), the issue was restored to the file of the AO with a direction to go through the details and decide the issue as per fact and law, after giving due opportunity of being heard to the assessee. (AY.2015-16)