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Section 40a(3) - electricity payment

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Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2013 Dear Sir,
a) Whether electricity payment made to TNEB by cash (> 20K)attract section 40A(3)?
b) Since the cheque paid to TNEB was dishonoured on two occassions, the party was asked to make payment through cash? whether in this case also 40A(3) applies? Pls reply

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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27 August 2013 The ans is yes if exp made in excess of 20,000 in a 1 single day sec 40A(3) will be attracted and will be disallowed.

Ganeshbabu K

Ganeshbabu K (Expert)
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27 August 2013 Vexed issue!!!

Let me tell you the payment is technically covered in Sec.40A(3) and attracts disallowance,,But,

It was allowed in some cases
.
.
Refer

https://www.simpletaxindia.net/2010/04/electricity-bill-paid-in-cash-40a3.html

Refer above article and come to opinion whether to allow or disallow

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