The Madras High court  was considering whether cash payment made for acquiring rights in Film  in excess of limit specified in S.  40A(3) could be allowed (even though the same did not fall within any of the situations specified in Rule 6DD on the basis of commercial expediency and proof of identity since 75% of the payment to the same parties was made by cheque and balance 25% was made by cash  . The court noting that the commercial expediency has to be decided on the facts of each case and in this case since the banking facilities were available in Chennai and the payments were made by cheque to the same parties, the assessee was not eligible to get the deduction for cash payments made by it (T C A Nos.645, 646 & 647 of 201 dt   22.09.2020 ( AY .2014-15 , 2015 -16)

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