PANKAJKUMAR RAMESHRAO DESHMUKH,AMRAVATI vs. INCOME TAX OFFICER WARD-2, AMRAVATI, AMRAVATI

ITA 246/NAG/2026Status: DisposedITAT Nagpur19 June 2026AY 2012-20134 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that Section 40A(3) cannot be invoked merely because land was purchased in the course of business, especially when the payment was made at the time of registration. The Tribunal relied on judicial precedents that emphasize considering business expediency and the object of the legislation.

What were the facts?

The assessee, a builder and developer, made a cash payment of Rs. 4,95,000/- for land purchase. The Assessing Officer disallowed this amount under Section 40A(3) of the Income Tax Act, which was upheld by the CIT(A).

What were the issues?

Whether cash payment for land purchase at the time of registration is disallowable under Section 40A(3) of the Income Tax Act. Whether business expediency and other relevant factors should be considered for exceptions to Section 40A(3).

Which sections of the Income-tax Act were involved?

Section 40A(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH :: NAGPUR

For Appellant: Shri Bhavesh Moriyani, Adv
For Respondent: Shri Surjit Kumar Saha, Sr.DR
Hearing: 16.06.2026Pronounced: 19.06.2026

PER ANUBHAV SHARMA, JM:

This appeal filed by the assessee is directed against the order of National Faceless Appeal Centre, Delhi, (for short, “CIT(A)”), dated 24/02/2026 passed under section 250 r.w.s. 254 of the Income Tax Act, 1961 (for short, “Act”) which is emanating from the assessment order dated 14.12.2017 passed u/s. 143(3) r.w.s. 263 of the Act by the ITO, Ward-2, Amravati, for the Assessment Year (AY) 2012-13. 2. On hearing both the sides, we find that assessee had filed return of income declaring total income of Rs.7,84,970/- and the assessment was completed u/s. 143(3) of the Act accepting the returned income. Thereafter, Ld. Principal Commissioner of Income Tax (Revisionary Authority) had examined the asses

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 40A(3)

All 3,278 judgments and leading authorities on Section 40A(3) →

Recent GST High Court judgments

Search GST case law →