27 December 2010
This is relating to a fact where a person has made cash payment above 20,000 being a cumulative payment against old outstanding payables where no indiviual bill exceeds Rs. 20,000/-. The learned ITO is disallowing this payment. My interpretation is that when bill and payment exceeds 20,000 then and then only Sec 40A(3) is applicable. Kindly express not only your views but also provide case laws in favour of my interpretation if any.
27 December 2010
This is an interpretation of law. where you have to prove that though cash payment exceeds 20000/- but not for single bill.and you have to produce all the bill to ito. if ito doesn't agree with you. then gofor appeal. where the same will be allowed .
CAclubindia
