disallowance under sec. 40 A 3 as per income tax

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kishan (Querist)
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03 March 2009 if a assessee puchased goods of rs. 15000 on 5.5.2008 from mr. a and rs. 18000 on 8.5.08 from the same supplier i.e. mr. a and maid total cash payment of two bills of rs. 33000 on a single day i.e. on 10.5.08
the whole payment should disallowed under sec. 40A(3)?
why

i refer the various refernce book but it is differnce of openion in the books also
as per books of prof. aahuja and prof. sighania it shoud not be dissallow
but in book of prof. manoharan it should disallow

plz. explian the reason for same
thanks

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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03 March 2009 section 40A (3) is not applicable in this case. as section says that it is applicable only in respect of an "expenditure" which isin excess of Rs.20000. here both are below 20000 i.e 15000 and 18000 and aggregate is not to be considred.

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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03 March 2009 for application of section 40A(3) both the payment and amount of bill should exceed Rs.20000.
u can refer taxmann`s direct taxes V.K.Singhania Para 148.3 point no.2. AY 2008-2009.

kishan

kishan (Querist)
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03 March 2009 thanks for reply

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