Sec. 40A (3)
This query is : Resolved
23 February 2010
Case law :
Shanti Ram Mehata Vs. Assistant Commissioner of Income Tax (2009)
Business expenditure – Disallowance under s. 40A(3) – Multiple payments to same party on a single day. Each payment below rs.20,000. AO made disallowance under s. 40A(3) on the ground that the total payments of one day exceeded Rs.20,000. Not justified. Disallowance under s. 40A(3) is applicable for each payment and not for the aggregate of the various payments made to same party during one day. Thus, disallowance can not be sustained.
Our Question: -
But as per Sec. 40A (3) (as amended) “total payment in a day” consider
Shanti Ram Mehata Vs. Assistant Commissioner of Income Tax (2009)
Business expenditure – Disallowance under s. 40A(3) – Multiple payments to same party on a single day. Each payment below rs.20,000. AO made disallowance under s. 40A(3) on the ground that the total payments of one day exceeded Rs.20,000. Not justified. Disallowance under s. 40A(3) is applicable for each payment and not for the aggregate of the various payments made to same party during one day. Thus, disallowance can not be sustained.
Our Question: -
But as per Sec. 40A (3) (as amended) “total payment in a day” consider
23 February 2010
Dear kumar
u your self have the answer as per amendment now payment is not to be considered billwise it is to be seen as partywise.
You have not mentioned the A.Y.
u your self have the answer as per amendment now payment is not to be considered billwise it is to be seen as partywise.
You have not mentioned the A.Y.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Unanswered Queries
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- LIC maturity claim whether taxable
- Sec 44ada applicable only or both
- ADDITION OF CHALLAN IN TDS RETURN FORM 140
- TODAY INCOME TAX SITE IS NOT WORKING ANY OFFICIAL EXTENSION
- HOUSING LOAN ISSUE
- TDS AND ITR ISSUE
- Portuguese Civil Code IT Return
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
- NRI ITR2 account in 2025-26.
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
