Disallowance u/s 40(a) 3
This query is : Resolved
Shibaji Mukhopadgyay
(Querist)
11 December 2009
I have made one cash payment of Rs 26000/- on behalf of my company for purchase of capital goods during construction of the project .The said payment will be capitalised .The cash payment made on urgency basis and the tranction took place out the state where the the plant construction iis going on.
Whether the said payment will be disalloewd by the IT Authority in future?
Whether the said payment will be disalloewd by the IT Authority in future?
Shibaji Mukhopadgyay
(Querist)
11 December 2009
100
Ram Avtar Singh
(Expert)
11 December 2009
Pyament for capital goods not attract 40(a)3. so its allowable.
Shibaji Mukhopadgyay
(Querist)
11 December 2009
Where it is written that payment for capital goods does not attract 40(a) 3 of IT Act
Ram Avtar Singh
(Expert)
11 December 2009
Section 40(a) (3) restricts claiming dedution for EXPENDITURE INCURRED which is shown in P&L ACCOUNT. as the purchase of CAPITAL GOODS will not appear in P&L Account then there is NO question of claiming Deduction.
Murtaza I Bhagat
(Expert)
11 December 2009
agree with mr. ram sir
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