about section 40a(3)

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Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 Dear Sir,

My question is that

A company purchase goods from Mr.y on 10/09/2014 through bill No. 12,13 respectively amt Rs. 18000,25000. on 12/09/2014 company also purchase from same party through bill no. 16 amt rs. 22000 and next day purchase through bill no. 18 amt rs. 25000.

on 20/09/2014 company make payment of rs 81000 in cash at same time (assuming that payment of bill amt is 18000+21000+20000+22000)

can this expenditure is allowed u/s sec 40a(3) or not?
and ans is different if company make expense instead of purchase.

please make answer as early as possible

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

16 September 2014 if total payment made is exceeding rs 20,000 then yes sec 40A(3) is applicable.

Nikhil Kaushik

Nikhil Kaushik (Expert)

16 September 2014 ideally only two of the invoices should be disallowed. However, there is a good chance that AO may disallow the whole of the payment made.

Querist : Anonymous

Querist : Anonymous (Querist)

16 September 2014 Thanx Sir,

Answer is also same if payment make for expense not for purchase.

Nikhil Kaushik

Nikhil Kaushik (Expert)

16 September 2014 yes. the answer is same...............

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

17 September 2014 yes ans also applicable for exp........

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