BHANDARKAR JEWELLERS,NAGPUR vs. INCOME TAX OFFICE WARD 1(1), NAGPUR

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ITA 60/NAG/2019Status: DisposedITAT Nagpur23 December 2022AY 2013-143 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the loans were availed in cash, making interest payments in cash was a justifiable reason. Therefore, the disallowance made under Section 40A(3) was deleted.

What were the facts?

The assessee claimed an interest expense of Rs. 7,62,973/- paid in cash for cash loans. The lower authorities disallowed this claim under Section 40A(3) of the Income Tax Act for violating prescribed payment modes.

What were the issues?

Whether interest paid in cash for cash loans is disallowable under Section 40A(3) due to violation of prescribed payment modes.

Which sections of the Income-tax Act were involved?

Section 40A(3)

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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR – VIRTUAL COURT

Before: SHRI S. S. GODARA

For Respondent: Shri G. J. Ninawe
Hearing: 02.11.2022Pronounced: 27.12.2022

ORDER

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