Sec. 14A & 69C of Income Tax Act, 1961 - Business Disallowance - The assessee is engaged in the business of marketing of manufactured fertilizers and retailed intermediate products as well as export of frozen and fresh meat. Assessee filed its return of Income declaring an income of Rs. 4,93,25,680/-. The AO made disallowance of Commission to MD to the extent of Rs. 2,81,405/-. Further, he made disallowance of Rs. 79,13,46,369/- on account of unverifiable & unexplained cash purchases under Section 69C of the Act, 1961 and also made disallowance of Rs. 1,64,54,752/- towards applicability of Section 14A read with Rule 8D. The CIT (A) allowed the appeal of the assessee. ITAT dismissed the appeal of the revenue holding that:- it is not a case of the AO that payments against purchases have been made by the assessee out of books of accounts. The CIT(A) has also given categorical finding that only 20% of the purchases where disallowed on account of cash payment which was duly reflected in the books of account of the assessee. Thus, there is no need to interfere with the findings of the CIT(A).—Deputy CIt vs. HIND INDUSTRIES LTD.[2020] 79 ITR (TRIB) 001 (ITAT-DELHI)