Sec. 40A(3) disallowance justified as cash payment made to persons who were employee of builder amp; not agents: ITAT

INCOME TAX : Where assessee, engaged in business of civil contractors/builders, claimed to have made payment to agents for purchase of raw material such as cement, bricks, etc., in cash in excess of prescribed limit under section 40A(3), since such agents were actually found to be employees of assessee, assessee would not qualify for exception under rule 6DD(k) and said payments made by it were to be disallowed under section 40A(3)INCOME TAX : Where assessee, engaged in business of civil contractors/builders, claimed to have made payment to agents for purchase of raw material such as cement, bricks, etc., in cash in excess of prescribed limit under section 40A(3), since such agents were actually found to be employees of assessee, assessee would not qualify for exception under rule 6DD(k) and said payments made by it were to be disallowed under section 40A(3)www.taxmann.com Latest Case LawsRead More

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