Sec 35 & 40A(3)-Disallowance

Save Share

This query is : Resolved

ahmeshere (Querist)
Follow

10 October 2010 If an assessee makes a contribution under section 35(1)(ii)/(iia)/(iii) of an amount exceeding Rs.20,000 in cash, will it attract disallowance under section 40A(3).

Can a contribution be considered to be an expenditure within the meaning of section 40A(3), since section 40A(3) provides for disallowance in respect of the expenditure which is otherwise deductible u/s 30 to 37.

What constitutes "Expenditure" within the meaning of sec 40A(3). Kindly explain the scope of sec 40A(3)(i.e., to which sections/provisions of the ACT does the abovesaid section apply and what are the sections/provisions which are not covered within the ambit of the abovesaid section.

Detailed explanation (quoting the relevant sections/rules) is requested.

ahmeshere

ahmeshere (Querist)
Follow

13 October 2010 Anyone, kindly answer my query