Held that the lands sold were agricultural lands and sellers were agriculturists and had insisted on cash payments and their identities were also not in dispute and payments in cash were also made for purchase of agricultural lands only. Rule 6DD(e)(i) covers payment made for purchase of agricultural or forest produce, disallowance under section 40A(3) was to be deleted. (AY. 2012-13)
Mohammed Ali Shaik v. ITO (2021) 190 ITD 771 /(2022) 211 DTR 94 / 216 TTJ 94 (Vishakha)(Trib.)
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Real estate developer-Purchase of agricultural land-Disallowance was held to be not justified. [R. 6DD(e)(i)]