Sec 40A(3)

This query is : Resolved

R S Sharma (Querist)
Follow

31 August 2009 Respected Sir,

I request you to give your valuable opinion with regard to Sec.40A(3) of the Income Tax Act (Cash Payment above Rs.20,000.00 during the Assessment Years 2001-02, 02-03 and 2003-04. From the careful reading of the proviso of Sec 40A(3), it appears that such cash payments, can be reassessed within a period of Four Years from the end of the Assessment years in which such cash payments were made. The relevant portion of proviso to Sec 40A(3) is reproduced below:

“ …………………………………………….. the Assessing Officer may recompute the total income of the assessee for the previous year in which such liability was incurred and make the necessary amendment, and the provisions of section 154 shall, so far as may be, apply thereto, the period of four years specified in sub-section (7) of that section being reckoned from the end of the assessment year next following the previous year in which the payment was so made : “

I request you to let me know if any payment above Rs.20000.00 made in cash be investigated after four years in a completed assessment.

With warm regards

Yours faithfully,

R S Sharma
220, Ganga, NGV Koramangala,
Bangalore-560047
Email : sharmars_2000@yahoo.com

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
Follow

31 August 2009 THE PROVISO REFERS TO A CASE WHERE A LIABILITY WAS INCURRED FOR EXPENSES BUT THE CASH IS PAID IN SUBSEQUENT YEAR ........THAN A RECTIFICATION PROCEEDINGS AND NOT REASSESSMENT PROCEEDINGS CAN BE STARTED AS PER THE PROVISO

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

bhavesh

CA Varun Gupta

Anoop KK

N N V Satish

kavita goel

Subscribe Now

Sec 40A(3)

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA