On appeal, the Tribunal held that, the assessee had made payment in cash exceeding Rs. 20,000 to three parties. \u00a0The assessee had taken different stands before the Assessing Officer and the CIT(A).\u00a0 The assessee had only made a general remark that due to business exigencies it had to purchase coal from the suppliers on cash payment.\u00a0 Since such business exigency was not backed by any documentary evidence to prove that the suppliers demanded cash payment only to supply coal, it can be said that Assessee had violated the provisions of Section\u00a040A(3) of the Act and the addition made was justified. (AY.2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40A(3) : Expenses or payments not deductible \u2014 Cash payments exceeding specified limit \u2014 Assessee taking different stands before AO and CIT(A) – General remark that payment made in cash due to business exigencies not acceptable \u2014 Disallowance is held to be justified <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-12525","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3g1","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=12525"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12525\/revisions"}],"predecessor-version":[{"id":12526,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12525\/revisions\/12526"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}