Assessee was running a travel agency and it made payments in cash exceeding Rs. 20,000 to two entities on account of purchase of flight tickets for his clients. Assessing Officer disallowed such payment by invoking provisions of section 40A(3). It was held by ITAT that from records it was found that Assessing Officer had not questioned genuineness of payment or credential of receivers and further, these entities had insisted for cash payment for arranging tickets and this amounted to business contingency for assessee. Hence, since genuineness of said transactions were not disbelieved by revenue and assessee made out a case of business contingency, impugned payment could not be disallowed under section 40A(3)  (AY 2011-12)