10 May 2009
it is not the bill amounts , but the amount of payment which is determining factor.since the payment is more than rs 20000, it can be disallowed u/s 40(A)(3)
10 May 2009
Sec.40(A)(3) says payment of "an expenditure" Here since there are different bills they would not be disallowed and this has been clarified by the department.
11 May 2009
Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure.
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