Assessee is  engaged in business of manufacturing of dairy products. PCIT passed revision order and remanded the matter on the ground that the  assessee  paid cash  who was claimed to be assessee’s employee.  During survey, it was admitted by assessee that he was contractor hence disallowable u/s. 40A(3) of the Act. On appeal the  Tribunal held  that during assessment proceedings, assessee submitted cash payment register and explained each item of proposed addition as per show cause notice issued by Assessing Officer and Assessing Officer after going through cash payment register and explanation of each item, did not make addition. Tribunal  quashed revisionary proceedings on ground that order passed by Assessing Officer was neither erroneous nor prejudicial to interest of revenue. On appeal by Revenue High Court affirmed the order of the Tribunal. (AY. 2013-14)