1986 (11) TMI 128 - AT - Income Tax

Summary

The ITAT Jaipur dismissed the Revenue's appeals against the CIT(A)'s deletion of additions under s. 40A(3) of the IT Act, 1961. The CIT(A) found the payments genuine, based on a running account with a sister concern. The CBDT circular allowed for cash payments if supported by a letter from the seller. The ITAT upheld the CIT(A)'s decision, stating no justification to interfere. Cross-objections supporting the CIT(A)'s orders were dismissed.