banner_ad

Cash payment for the purchase of depreciable asset

This query is : Resolved 
Profile Image

Profile Image

(Querist)
09 October 2009 Dear Sir

If we make payment above Rs. 20000/- in cash for the purchase of fixed asset, then whether provisions of Section 40A (3)are attracted or not?

If it attract then which amount will be disallowed ? & why?
Profile Image

Shyam Lal Naik

Profile Image

Shyam Lal Naik (Expert)
09 October 2009 Since it is a payment for capital expenditure, there is no question of any dis allowance.
Profile Image

C A Anjani Kumar mundhra

Profile Image

C A Anjani Kumar mundhra (Expert)
09 October 2009 section 40A(3) does not attract
Profile Image

CA Suresh Choudhary

Profile Image

CA Suresh Choudhary (Expert)
09 October 2009 agree with experts
Profile Image

chetan soni

Profile Image

chetan soni (Expert)
09 October 2009 but the depreciation is booked as expenses. Hence this amount to indirect booking of cash expenses above 20K. Hence the depreciation on such asset will be disallowed u/s 40A(3).

Its my opinion.
Profile Image

Nazir

Profile Image

Nazir (Expert)
09 October 2009 agreed with Chetan.. exactly..
Profile Image

Shyam Lal Naik

Profile Image

Shyam Lal Naik (Expert)
10 October 2009 Beg to disagree that depreciation will be disallowed.

Depreciation is neither an expense or expenditure. It is an allowance.

The captioned section is not applicable to an allowance.
Profile Image

Aditya Maheshwari

Profile Image

Aditya Maheshwari (Expert)
10 October 2009 40A(3) not applicable on assets purchased
Profile Image

Ratan Sharma

Profile Image

Ratan Sharma (Expert)
10 October 2009 Sec. 40A(3) not applicable.
Profile Image

Ashraf Valappil

Profile Image

Ashraf Valappil (Expert)
13 October 2009 40A(3) not applicable. pls do not connfuse students
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
23 May 2026
Article Assistant

Geeta Manchanda & CO.

New Delhi

CA Inter

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
14 May 2026
ICSI Trainees for 21 Months and Semi-Qualified CS

CMNITY HIRE

New Delhi

Others

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details