Disallowance u/a 40A (3) is not applicable when Payment was by Account Payee Cheque or Account Payee DD: ITAT [Read Order]

Disallowance - not - applicable - Payment - Account - Payee - Cheque - Account – Payee – DD – ITAT – TAXSCAN

The Chennai bench of the Income Tax Appellate Tribunal (ITAT) held that disallowances under Section 40A (3) of the Income Tax Act, 1961 are not applicable when payment was by account payee cheque or account payee demand draft. The assessee filed an original return of income admitting total income at Rs.3,82,06,896/-. The limitation for issuance…

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