secrutiny case

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Bipin Kumar Agarwal (Querist)
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05 January 2011 Frnds...my bro is carring a business in which he paid some party cash more than 20000/- but we showed less than 20000/- in different dates..and his criditors did the same...but one of the creditors showed cash received amounting to rs.150000/- in cash.and ito told u have to paid tax & penalty on 150000/-

CA Sanat Pyne

CA Sanat Pyne (Expert)
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05 January 2011 YES. AS PER SECTION 40A(3) THE SAME AMOUNT WILL BE DISALLOWED.

Bipin Kumar Agarwal

Bipin Kumar Agarwal (Querist)
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05 January 2011 sir i know it is disallowed under 40A(3)
what i have 2 do now....advise me....and the process through which i will negotiate from that officer

CA Sanat Pyne

CA Sanat Pyne (Expert)
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05 January 2011 TELL ME WHEATHER PAYMENT HAS BEEN MADE FOR SINGLE BILL OVER 20000/- OR NOT.
IF ANY CONSOLIDATED PAYMENT HAS BEEN MADE FOR A NUMBER OF BILL, WHERE THE BILL AMOUNT IS 20000/- OR LESS, THEN IT WILL BE ALLOWABLE U/S 40A(3).

Bipin Kumar Agarwal

Bipin Kumar Agarwal (Querist)
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05 January 2011 cash pyament was made against 3 bill above 20000/-

CA Sanat Pyne

CA Sanat Pyne (Expert)
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05 January 2011 IF THERE IS ANY BILL BELOW 20000/- THE SAME WILL BE ALLOWABLE.

Bipin Kumar Agarwal

Bipin Kumar Agarwal (Querist)
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05 January 2011 thanks a lot....

mohinder kansal

mohinder kansal (Expert)
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05 January 2011 it will depend upon the circumstances how the case was represented - whether creditor was summoned - whether request for cross examination of creditor was made by the assessee - the decision shall be based on the answer of these above situations

Bipin Kumar Agarwal

Bipin Kumar Agarwal (Querist)
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06 January 2011 bro...actually we are not working with that creditor now...and cross examine done by ITO....

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