Assessee-company was engaged in business of land dealing and development. During relevant assessment year, assessee purchased certain lands for which cash payment was made which exceeded Rs. 20,000 Assessing Officer made disallowance under section 40A(3). Since the assessee treated said lands as stock-in-trade and no deduction was claimed while computing business income no disallowance could be made. (AY. 2012-13)
Vikrant Happy Homes (P) Ltd. v. Dy. CIT (2022) 218 TTJ 1 (UO) / 138 taxmann.com 559 (Pune) (Trib)
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits-Land dealing-Stock in trade-Cash payment was not claimed as expenditure-Disallowance is not justified. [R. 6DD]