It was held that the payment has been made in cash which was in violation to the provisions of S. 40A (3) of the Act, and no compelling circumstances brought on record. Therefore, the decision of AO and CIT(A) was upheld. (AY. 2010-11, 2011-12, 2012-13)
Grand Lilly Motels Ltd. v. ACIT (2020) 203 TTJ 30 (UO) (Amritsar) (Trib.)
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-No compelling circumstances brought on record-Disallowance is held to be justified.