No Material Records to invoke Disallowance u/s 40A(3): ITAT directs AO to estimate Addition at 10% for Purchases [Read Order]

material - disallowance - ITAT - AO - Purchases - TAXSCAN

The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has held in partial relief to the assessee that, it was erroneous to invoke Section 40A(3) of the Income Tax Act, 1961 and disallow deductions to impose a tax of 20% on voucher bills and purchases that the assessee failed to produce. The assessee could…

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