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Section 40a(3): disallowance of expense

This query is : Resolved 
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(Querist)
09 January 2016 Section 40A(3)(a) of the Income-tax Act, 1961 provides that any expenditure incurred in respect of which payment is made in a sum exceeding Rs.20,000/- otherwise than by an account payee cheque drawn on a bank or by an account payee bank draft, shall not be allowed as a deduction.

I have a doubt, when a company transfers some amount to Employee Imprest A/c and Employees paid in cash in excess of Rs. 20,000/ for expense on behalf of co.

Will it be allowed or disallowed?
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CA PARAS BAFNA

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CA PARAS BAFNA (Expert)
09 January 2016 The payment will be covered U/s 40A(3)
Please follow the link-
https://www.caclubindia.com/experts/disallowance-of-cash-above-rs-20000-317050.asp
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CA CMA CS Ram Pavan Kumar Melam

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CA CMA CS Ram Pavan Kumar Melam (Expert)
09 January 2016 Employee is incurring expenditure on behalf of the company as an agent. Such expenditure will be disallowed.
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SUBODH KUMAR

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SUBODH KUMAR (Querist)
09 January 2016 thank u......................
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