The Chennai Bench of the Income Tax Appellate Tribunal (ITAT) has sustained the disallowance under section 40A(3) of the Income Tax Act as a cash payment exceeds INR 20,000 to a single party in a single day.The two-member bench headed by Mahavir Singh (Vice President) and G. Manjunatha (Accountant Member) has observed that Section 40A(3), which has been amended w.e.f. 01.04.2009 by the...
