Addition u/s 40A - purchases in cash in excess of ₹ ...
Cash Purchases Over Rs. 20,000 Justified u/r 6DD Due to Vendor Bank Limitations and Remote Transactions.
March 19, 2024
Case Laws Income Tax AT
Addition u/s 40A - purchases in cash in excess of ₹ 20,000/ - case of the assessee that all the cash purchase are fully covered under Rule 6DD(e)(ii) of the Income Tax Rules, as many venders do not have bank account and the purchases were done away from remote areas - whether assessee has fulfilled the condition laid down in Rule 6DD? - The Tribunal noted that the appellant had indeed made substantial cash purchases but found merit in the argument that these were covered under Rule 6DD, considering the nature of the business and the vendors' circumstances.
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