Dismissing the appeal the Court held that payments made for purchases of cream from two companies would not be a payment made to a cultivator or grower or producer of a dairy product so as to bring the cash transaction within the mischief of rule 6DD(f)(ii) of the Rules. The Tribunal was right in affirming the disallowance. (AY.2001-02)
Sri Murugan Ghee Store v. ITO (2023)455 ITR 669/334 CTR 564 (Telangana)(HC)
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Payments to cultivator, grower or producer of dairy produce-Payments for purchase of cream-Disallowance is justified. [R. 6dd(f)(ii)]