Cash Payments
This query is : Resolved
02 September 2008
author : Jiju Oommen
Posted On : 9/1/2008 10:37:20 PM
Cash expenses exceeding Rs.20,000 are disaalowed.
But if a party gives the some amount as advance to another person by maintaining an account, say Adavance to Gopal, and if authorises that person for such expenses what is the applicability of the Section.
Act says only about expenses...
whether such advances are covered under this act.
Answer : NO.
Posted On : 9/1/2008 10:37:20 PM
Cash expenses exceeding Rs.20,000 are disaalowed.
But if a party gives the some amount as advance to another person by maintaining an account, say Adavance to Gopal, and if authorises that person for such expenses what is the applicability of the Section.
Act says only about expenses...
whether such advances are covered under this act.
Answer : NO.
02 September 2008
Advance is not an expenses, hence there is no question of allowance or disallowance.
02 September 2008
Advance payments are also covered - Even if the payments were made by way of advances and were ultimately treated as discharging the liability to pay the price of the goods purchased, the payments so made must be considered to fall within the expression ‘expenditure’ incurred for payment of the price of the goods - Kejriwal Iron Stores v. CIT [1988] 169 ITR 12 (Raj.).
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- DELIVERY GOLD & SILVER AND OTHER ETF TRADING PROFIT AS BUSINESS INCOME
- GSTR-1A How to update Invoice
- Excess salary payment.
- 3cd- cash system of accounting is allowed?
- Provision for loans that are under Revenue Recovery
- APPLICABILITYOF GST ON STUDENT HOSTEL FEES
- Form 121-contradictory opinions
- Capital gain from sale of house property
- Stamp Paper for partnership firm change new income tax 2025
- Is Personal Guarantee of Director is Compulsory in case of loan to company ??
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
- Updated return in budget 2026
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
