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Sec.40A(3)

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(Querist)
01 February 2011 My client has purchased land worth of Rs.50,00,000 and shown it in the block of asset but he has received an order from the assessing officer to disallow an amount of Rs.1000000 for the asst.year 2008-09 is it correct.
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Manmohan ACA, CS

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Manmohan ACA, CS (Expert)
01 February 2011 SECTION 40A(3) DISALLOWS ONLY REVENUE EXPENDITURE EXCEEDING Rs. 20000/- AND NOT CAPITAL EXPENDITURE EXCEEDING Rs. 20000/-,THEREFORE CAPITAL EXCEEDING Rs. 20000/- CAN BE PURCHASED IN CASH AND NOTHING SHALL BE DISALLOWED
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CA Pradeep Kumar Rajput

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CA Pradeep Kumar Rajput (Expert)
01 February 2011 Nothing is to be disallowed as it is a capital expenditure
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Guest

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Guest (Expert)
01 February 2011 Agree with both experts.
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Dhirajlal Rambhia

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Dhirajlal Rambhia (Expert)
08 October 2021 As per amendment in the act, the cash expenditure for acquiring any capital asset is also disallowed now.

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