Adjustment in books Rule 6DD(d)- Where the payment is made by way of adjustment against the amount of any liability incurred by the payee for any goods supplied or services rendered by the assessee to such payee.
in the light of above rule, i think cash payment exceeding Rs. 20k are allowed.
25 February 2015
your case does not fall in any clause of rule 6dd as wat u stated doesnt have the same transacrtion in your case as its for adjusting entry. hence will be disallowed in your present case.
CAclubindia
