disallowances of exps....
This query is : Resolved
27 March 2009
hiiiiii,
The co. has incurred exp. of Rs. 40000. The payment of exp. is made by the co. directly by depositing cash into party's bank account.
So whether this exp. is going to be disallowed because of payment exceeding Rs. 20000 by cash???????????????
The co. has incurred exp. of Rs. 40000. The payment of exp. is made by the co. directly by depositing cash into party's bank account.
So whether this exp. is going to be disallowed because of payment exceeding Rs. 20000 by cash???????????????
27 March 2009
as per case study
SriRenukeswara Rice Mills Vs.ITO (2005) 278 ITR 77.
since the transaction became traceable it is allowed and does not attract 40A(3)
SriRenukeswara Rice Mills Vs.ITO (2005) 278 ITR 77.
since the transaction became traceable it is allowed and does not attract 40A(3)
27 March 2009
The Bangalore bench of the Income tax Appellate Tribunal held that such expenditure can be fully allowed as a bsiness expenditure in the situation referred in the query. Citation:- SriRenukeswara Rice Mills Vs.ITO (2005) 278 ITR 77.
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28 March 2009
Thanks Sir
16 February 2013
The whole purpose of Sec 40A(3) is to break the mechanism of traill less transsactions, & this transactions has very much established the trail what was required.
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