40A(2)

This query is : Resolved

CA Rashmi (Querist)
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10 May 2009 i want to know whether the following expenses are disallowed u/s 40A(3)

there are 3 different bills:
dated amount
15.01.09 15000
19.01.09 12300
28.01.09 18000

the assesse makes a single payment in cash for rs.45300 on 31.09.09

Ca Anand Dubey

Ca Anand Dubey (Expert)
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10 May 2009 yes

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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10 May 2009 In my opinion and careful reading of the law, it would not be disallowed.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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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)

CA Nitin Wadhwani

CA Nitin Wadhwani (Expert)
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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.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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11 May 2009 dear nitin

please provide me the clarification circular number to further enlighten the issue.

CA Rashmi

CA Rashmi (Querist)
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11 May 2009 with due respect to all experts
m more confused now

Manoj

Manoj (Expert)
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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.

CA Rashmi

CA Rashmi (Querist)
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12 May 2009 i have not got my answer yet,there is lot of contradiction

Manoj

Manoj (Expert)
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13 May 2009 the expenses will be disallowed

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40A(2)

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