No Sec. 40A(3) disallowance if bank account of payee was not operational due to attachment order passed by ESI dept.

INCOME TAX : Where assessee had entered into agreement with a company for conversion work on job work basis and paid conversion charges in cash as bank account of said company could not be operated because of order of attachment passed by ESI department, assessee was entitled to exemption under rule 6DD in respect of payment made in cash and thus, no disallowance under section 40A(3) was called for

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