Cash payment exceeding rs 20000 under rule 6dd

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JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)

15 September 2014 Dear Experts
Whether cash payments exceeding Rs 20000 paid to Kerala Electricity Board towards monthly Charges is allowable for Tax Audit
Rgds

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

15 September 2014 the ans is no..........................its disallallowed

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JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)

15 September 2014 Sir
Kindly note that Kerala State Electricity Board(KSEB) is a statutory body of Kerala Goverment and in such a case whether the disallwance is necessary?
Rgds

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

15 September 2014 only payment made to central or state government is covered by rule 6dd.

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Nikhil Kaushik

Nikhil Kaushik (Expert)

15 September 2014 Tushar is correct that electricity board is not covered within the definition of govt. However, such payments have been often allowed in cases such as Trivedi Corpn. Pvt. Ltd., Mumbai vs Assessee on 11 January, 2010 (ITA Nos.2844 & 2845/AHD/2006).

So, kindly refer to this case and check whether you can use this for defending your position

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JAYAKUMAR.M.G

JAYAKUMAR.M.G (Querist)

16 September 2014 Thank you Sir
Infact this kind of knowledge what we desired.
Rgds

Nikhil Kaushik

Nikhil Kaushik (Expert)

16 September 2014 you are welcome Jayakumar...

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