Section 40A(3)
This query is : Resolved
21 September 2008
A payment is made for purchases by depositing cash into the bank account of the seller by the buyer, if exceeds Rs 20000/- will that be liable to be disallowed under Section 40A(3) of Income Tax? Pls Advise
S.Srinivasaraghavan
(Expert)
22 September 2008
It will be disallowed as it is not in accordance with the stipulation of section 40A(3).
22 September 2008
Sir
The Bangalore Tribunal in Sri Renukeswara Rice mills vs ITO (2005) 278 ITR 77 has allowed the expenditure.
The Bangalore Tribunal in Sri Renukeswara Rice mills vs ITO (2005) 278 ITR 77 has allowed the expenditure.
23 September 2008
THanks for your replies. THough I'd similar views athat of Mr S.Srinivasaraghavan, however, the fact brought by Mr Chakrapani is enlightening.
Mr Chakrapani, can u please provide the case digest. Also if there was a appeal to the tribunal decision, pls provide dtails.
Mr Chakrapani, can u please provide the case digest. Also if there was a appeal to the tribunal decision, pls provide dtails.
Ravikumar.G
(Expert)
23 September 2008
Mr.Chakrapani can you please provide further appeal regarding this issue.
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