Disallowance u/s 40A(3) ::

Last updated: 09 September 2007

Court :
HC

Brief :
Held by the Hon`ble Court that, rule 6DD provides exception of payment by crossed Cheque and draft in certain circumstances and CBDT is also issued some guidelines for cash payment these are illustrative and not exhaustive. Therefore cash payment made on Sunday to the person of unorganised sector exceeding the specified limit in section 40A(3) is valid in law.

Citation :
C.I.T. Vs. K.K.S.K. Leather Processor P. Ltd.

Disallowance u/s 40A(3) C.I.T. Vs. K.K.S.K. Leather Processor P. Ltd. 02/05/2007 [2007] 292 ITR 669 (Mad) Case Fact: Whether, disallowance of cash payment made on Sunday to the person of unorganised sector exceeding the specified limit in section 40A(3) is valid in law ? Decision: Held by the Hon`ble Court that, rule 6DD provides exception of payment by crossed Cheque and draft in certain circumstances and CBDT is also issued some guidelines for cash payment these are illustrative and not exhaustive. Therefore cash payment made on Sunday to the person of unorganised sector exceeding the specified limit in section 40A(3) is valid in law.