sec 40 A(3)

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ABHIJIT (Querist)
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03 July 2009 If an assessee makes a payment of two different bills(none of them exceeds Rs.20,000)at the same time in cash or by bearer cheque, IS SECTION 40A(3) APPLICABLE HERE??
for eg.date of puchase is 20th april 2008 from same supplier (two separate bill of Rs 9500 and Rs 13000) and supplier is paid on 25th april by cash.that is 9500+13000=22,500. WILL THIS AMOUNT DISALLOWED????
and what if the supplier was paid on same date that is date of purchase (20th april)

CA Devanshi Gandhi (Ajani)

CA Devanshi Gandhi (Ajani) (Expert)
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03 July 2009 not applicable.

ABHIJIT

ABHIJIT (Querist)
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03 July 2009 sir can u tel me the reason of not applicable

ABHIJIT

ABHIJIT (Querist)
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04 July 2009 sir its like paying cash more than 20000 so y it is not applicable.
pls tell me

NITIN

NITIN (Expert)
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04 July 2009 Yes it is applicable since as per provision if payment is made in excess of Rs 20000 and provision does not state that amount is related to single bill and hence it is applicable

ABHIJIT

ABHIJIT (Querist)
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04 July 2009 REQUEST TO EXPERTS TO ANSWER THIS QUERY PLEASE PLEASE

some says it is applicable and some says it is not applicable.
i request experts to answer this query with reason. why it is applicable or not applicable.
as per sec 40A(3) rs 20000 paid in cash is disallowed than why it is said that if two bills are less than 20,000 individually than it is not disallowed

ABHIJIT

ABHIJIT (Querist)
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08 July 2009 pls pls pls can any one tell me properly?
request expert to tell me

ABHIJIT

ABHIJIT (Querist)
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27 May 2010 THANKS

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