Allowing the appeal of the assessee the Court held that all the purchases made were supported by valid dealer invoices. The Commissioner (Appeals), having considered the material, recorded a finding that the parties were existent and that their bank accounts were identified. Except one party, all other parties had filed sales tax returns. The bank report would indicate that the demand drafts were admittedly not crossed. However, the payments were credited into the accounts of the payees. The Tribunal was not justified in confirming the disallowance  under S 40A(3) of the Act . ( AY.2005 -06)