No Disallowance u/s 40A(3) where cash payments are genuine and verifiable
For Assessment Year 2014–15, the taxpayer, Sabha Chand, engaged in the retail sale of liquor, reported turnover of INR 6.56 crores with a net profit of 0.85%. During the year, the taxpayer purchased liquor worth INR 3.96 crores from M/s. Ganga Wines, Narnaul, making payments in cash. Tax was collected at source (TCS) on such purchases, and the vendor’s PAN and other details were available on record.
