The  assessee is a government contractor, cash book of the assessee  showed that during year he made cash payments exceeding Rs. 20,000 on a single day for material purchased. Assessee contended before Assessing Officer that though cash book showed payments exceeding Rs. 20,000 in cash on a single day for material purchased, day book clearly bifurcated same based on truck loads of material received, which indicated payment having been made individually to truck drivers and none of which single payment exceeded Rs. 20,000.  Assessing Officer held  that no substantiating bills or vouchers had been produced by hence  disallowed 20 per cent of cash payments by invoking provisions of section 40A(3). Tribunal affirmed the order of the Assessing Officer. On appeal the Court held that  since assessee had not shown as to whether supplies were sourced from different persons and had not produced any supporting bills or vouchers, which lead to only a reasonable inference that amounts were paid to supplier in lump sum for material delivered on a single day. Order of Tribunal is affirmed. (AY. 2004-05)