01 February 2011
My client has purchased land worth of Rs.50,00,000 and shown it in the block of asset but he has received an order from the assessing officer to disallow an amount of Rs.1000000 for the asst.year 2008-09 is it correct.
01 February 2011
SECTION 40A(3) DISALLOWS ONLY REVENUE EXPENDITURE EXCEEDING Rs. 20000/- AND NOT CAPITAL EXPENDITURE EXCEEDING Rs. 20000/-,THEREFORE CAPITAL EXCEEDING Rs. 20000/- CAN BE PURCHASED IN CASH AND NOTHING SHALL BE DISALLOWED
CAclubindia
