Dis-allowance under section 40 a(3)
This query is : Resolved
Arpit Agrawal
(Querist)
17 December 2011
The assesee is engaged in trading of Iron Scraps Etc. where he purchases all the scraps from the N.E.Railways under Central Government.
All the purchases are made in cash as the N.E.Railways accepts only cash. However, the tender of N.E.railways is silent on mode of payment.
Now, the A.O.Dis-allows all the purchases under Section 40 A(3).
Clearly, all the purchases of the assessee are genuine.
Is there any decided case laws or any related section for the same?
Is the assesee is covered under Rule 6DD(b)?
All the purchases are made in cash as the N.E.Railways accepts only cash. However, the tender of N.E.railways is silent on mode of payment.
Now, the A.O.Dis-allows all the purchases under Section 40 A(3).
Clearly, all the purchases of the assessee are genuine.
Is there any decided case laws or any related section for the same?
Is the assesee is covered under Rule 6DD(b)?
CA Hardik Bunha
(Expert)
17 December 2011
A enterprise which is under government is free from this section.
An assessee can paid payment in cash. this situation covered in rule 6DD.
An assessee can paid payment in cash. this situation covered in rule 6DD.
Message likes :
1 times
Arpit Agrawal
(Querist)
18 December 2011
but Rule 6DD specifically mentions "Where payment is made to the Government and, under the rules framed by it,such payment is required to be made in legal tender.".
How do we confirm the RULES FRAMED by the Govt. as the legal tender itself is silent about it???
How do we confirm the RULES FRAMED by the Govt. as the legal tender itself is silent about it???
Arpit Agrawal
(Querist)
18 December 2011
but Rule 6DD specifically mentions "Where payment is made to the Government and, under the rules framed by it,such payment is required to be made in legal tender.".
How do we confirm the RULES FRAMED by the Govt. as the legal tender itself is silent about it???
How do we confirm the RULES FRAMED by the Govt. as the legal tender itself is silent about it???
Aijaz Shaikh
(Expert)
18 December 2011
If you can get declaration from railways that they accept only cash as a mode of payment, it may help.
Message likes :
1 times
Arpit Agrawal
(Querist)
19 December 2011
sure Mr.Aijaz..that I have already told the client...Can anyone help me in getting few decided cases on the issue, if any??
Arpit Agrawal
(Querist)
23 August 2012
Thanks All
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- Issuing of delivery challan by seller of goods
- EPF ECR NEW RULES Sep 17th 2026
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
