ITAT allowed taxpayer's appeal, finding cash payments for land ...

Land Purchase Cash Payments Validated as Genuine Business Transactions Under Rule 6DD Exceptions

April 22, 2025

Case Laws Income Tax AT

ITAT allowed taxpayer's appeal, finding cash payments for land purchase were genuine business transactions. The tribunal determined payments were made out of commercial necessity and complied with Rule 6DD exceptions. Cash deposits during demonetization were substantiated through assessee's cash book, which demonstrated advances against land/plot purchases. The appellate tribunal set aside the lower authority's order, directing the AO to delete the tax addition, effectively vindicating the taxpayer's accounting practices and validating the cash transactions as legitimate business expenditures.

View Source

← Previous Next →

ITAT allowed taxpayer's appeal, finding cash payments for land ...

Land Purchase Cash Payments Validated as Genuine Business Transactions Under Rule 6DD Exceptions

April 22, 2025

Case Laws Income Tax AT

You may also like:

Disallowance u/s 40A(3) - cash payment made by the assessee for purchase of land - issue of disallowance of expenses does not arise as the amount paid for purchase of...

Bogus purchase - The supplier parties to whom cheque payments were made for purchases booked in books of account, returns the corresponding cash back to the assessee...

Disallowance u/s 40A(3) - transactions and payments made in cash - assessee filed affidavits from sub-contractors of assessee firm and they insisted for cash payments to...

Capital asset or Business asset - assessee had purchased the land for the purpose of constructing flats on it - Various reasons given by CIT(A) to treat the land as...

Addition u/s 40A(3) - cash payment for the purchase of land - On the day of transaction, purchaser demanded cash - registration of land took place in the afternoon of...

Disallowance u/s. 40A(3) - business expediency in payment of cash towards genuine transaction - The contention of the assessee from the day one is that the sellers...

Disallowance u/s 40A(3) - cash payment for purchase of land - assessee has filed necessary evidences to prove that the impugned land has been acquired as an investment...

Profits arising on sale of land - ‘business income’ OR 'capital gains' - after purchase of land assessee got if converted to NA land - the assessee also got a lay out...

Addition u/s 40A - sum paid in cash in respect of purchase of the two immoveable properties - Sale deed has been executed on 18.8.2013 and the payment has been made on...

HC held that u/s 40A, cash payments are restricted to prevent false income claims. Exemptions allowed for special circumstances where bank transactions are impossible....

Disallowance u/s 40A(3) - Payment in cash in excess of Rs. 20,0000 - exception under rule 6DD - purchase of marble chips and alluminium product cannot be said to be an...

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...

Cash payment for purchase of fruits - the payment in cash for purchase of agricultural commodities is covered by Rule 6DD(e) of the Rules and in such a situation merely...

Capital gain arising on transfer of land - STCG arising out of the transfer of non-agricultural land - real owner - The appellant asserts that the land was purchased on...

Addition u/s 40A(3) - cash payment in excess of prescribed limit - Genuineness or otherwise of payment is not a criteria to exclude cash payment in excess of prescribed...

Quick Updates: