Section 40a(3) & 40a(ia)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
02 June 2012
Can there be two disallowances u/s 40A(3) and 40a(ia) of the Income Tax Act to the very same expenditure?
02 June 2012
Any expenditure can be disallowed when a claim has been made by the assessee to allow such amount as an expenditure.
.
Once the claim is disallowed, the expenditure gets nullified. Delete the amount of Expenditure. As a result, Figure of Profit will increase.
.
At the second time when disallowance is being made, delete the amount of the same expenditure. What will you get by deleting 0. The same result.
.
Hence an expenditure can not be added back twice as its effect disappears at the time of first disallowance.
.
Yet, the penalty provisions for non deduction of TDS will come into play.
.
.
Once the claim is disallowed, the expenditure gets nullified. Delete the amount of Expenditure. As a result, Figure of Profit will increase.
.
At the second time when disallowance is being made, delete the amount of the same expenditure. What will you get by deleting 0. The same result.
.
Hence an expenditure can not be added back twice as its effect disappears at the time of first disallowance.
.
Yet, the penalty provisions for non deduction of TDS will come into play.
.
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
Similar Resolved Queries
Unanswered Queries
- Section 270A penalty
- GST Registration Application -Rejected
- GSTR 9C- Table 9
- Tax liability on gift amount given to blood relation
- International transfer pricing- -> father entity vs son entity ->WHERE NO mutual say in management
- Query on solved queries
- Reimbursement of expense- GST applicable or not
- Form 104 stamp paper deed
- To Whom the Professional Invoice should be Raise
- Sale Proceed of Urban Agri. Land received in Advance in FY 24-25 but Registry is made in next year
- PLACE OF SUPPLY FOR COMMISSION AGENT
- Transport service POS
- E INVOICE, E-WAY, INVOICE
- GST RATE ON CONSTRUCTION BRICKS ?
- E stamp paper purchase
- Problem in filing Returns for International workers in EPFO
- Clarification for reversal of IGST on transfer of duty-free imported goods from EOU to DTA unit
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
Trending Online Classes
-
Live Course on GSTR 9 & 9C for FY 24-25(Detailed discussions, FAQ, Case studies and Live demo of GSTR 9/9C on GST Portal)
Industry Expert16 November 2025
CAclubindia
