Where assessee was putting up construction not for self occupation, but for business of selling a portion of building and leasing over premises it could not be absolved of its obligation under section 40A(3)

[2012] 19 taxmann.com 105 (Karnataka) HIGH COURT OF KARNATAKA Sanu Family Trust DECEMBER 7, 2011Section 40A(3) of the Income-tax Act, 1961

 - Business disallowance - Cash payment exceeding prescribed limits - Assessment year 1996-97 - Whether where assessee was putting up construction not for self occupation, but for business of selling a portion of building and leasing over premises it could not be absolved of its obligation under section 40A(3) and, therefore cash payments made by assessee in excess of Rs. 20,000 could not be allowed - Held, yes [In favour of revenue]