Explain with brief reason as to allowability as per the provisions of the Income-tax Act, 1961 of the following payments made during the year while computing income from business or profession for the Assessment Year 201

Allowable as Deduction: As per Rule 6DD of the Income Tax Rules, 1962, in case the payment is made for purchase of agricultural produce directly to the cultivator, grower or producer of such agricultural produce, no disallowance under section 40A(3) is attracted even though the cash payment for the expenses exceeds ₹10,000. Therefore, in the given case, disallowance under section 40A(3) is not attracted since the cash payment for purchase of oil seeds made on 16th August, 2018 was directly to the farmer and is allowable as deduction while computing income from business or profession for the AY 2019-20.