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Payment made in cash for more than 20,000

This query is : Resolved 
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(Querist)
01 June 2011 Dear Sir,
My Name is Ishant Agarwal.
In one of my client Company, one director goes in US for office purpose. He purchase US Currency for 2000$. He pay Ebullient amount in Cash to Delar i.e near Rs. 92000.
in US he spend these Dollar.
Can this Expenses is Allowed in Income Tax Act.
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Ramasubbu K

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Ramasubbu K (Expert)
01 June 2011 Since he has spent the amount officially, it shall be allowed under IT Act.
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Ishant agarwal

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Ishant agarwal (Querist)
01 June 2011 Thanks Sir
But as per sec 40(a)any Expenses for more than 20000 in cash is diallowed.
can this expenses is allowed even if all 2000$ spend in singal transaction.
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Timsy Dua

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Timsy Dua (Expert)
01 June 2011 Kindly see the exceptions to the rule, where the payment made in cash for more than Rs.20000 is not disallowed.
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Timsy Dua

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Timsy Dua (Expert)
01 June 2011 Kindly see the exceptions to the rule, where the payment made in cash for more than Rs.20000 is not disallowed.
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Vivek Mehta (CA, DISA,CS, MBA)

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Vivek Mehta (CA, DISA,CS, MBA) (Expert)
01 June 2011 The expenses will be allowed and you can see the exception of section 40A(3) i.e. Rule 6DD, you'll get more clear understanding.
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