Assessee was in the business of hardware and electrical goods. During the year, the assessee made several cash payments in a day exceeding Rs.20,000 for buying Stock-in-trade from two companies.  The Assessing Officer made disallowance under section 40A(3) in respect of said payments on the ground that the assessee could not produce any compelling reasons for making said payments in cash.  Assessee contended that suppliers insisted on payments in cash.  In the case of one of the parties, payment was directly deposited in the bank account of the supplier. Matter was remanded back to the AO for verification. (AY. 2014-15)