TAX AUDIT

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student (Querist)
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18 May 2011 PYMT IS MADE BY ORG TOWARDS ADVANCE & IF SUCH PYMT EXCEED 20000/-

THEN ALSO SEC 40A(3) WIL NOT BE ATTRACTED BECAUSE AS PER THIS SEC ALSO ONLY THOSE EXP CAN BE DISALLOWABLE WHICH CAN BE OTHERWISE ALLOWABLE UNDER THE HEAD PGBP.......
B/C SEC START AS WHERE THE ASSESSEE INCURRS ANY EXPENDITYRE..............

THEREFORE THIS SEC WIL NOT APPLY IN CASE OF THOSE ITEMS WHICH R NOT ALLOWABLE U/H PGBP LIKE ADVANCE PYMT FOR FLATS.

ONE MORE PT=THAT IN CASE OF LOAN/DEPOSIT TAKEN/ACCEPTED & REPYMTS=269SS/T APPLY BUT IN CASES OTHER THAN THIS IF CASH IS RECD FOR OTHER REASONS WHICH SECTION IS ATTRACTED EG CASH INTRODUCED BY THE PROP IN EXCESS OF 20000

B/C FOR PYMTS[P & L A/C] THERE IS 40A(3) FOR RECEIPTS OTHER THAN 269SS & T WHETHER THERE R ANY OTHER SEC

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 May 2011 Advance payments are also covered - Even if the payments were made by way of advances and were ultimately treated as discharging the liability to pay the price of the goods purchased, the payments so made must be considered to fall within the expression ‘expenditure’ incurred for payment of the price of the goods - Kejriwal Iron Stores v. CIT [1988] 169 ITR 12 (Raj.).

Link:

https://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2001ITAct/Caselaws2001/casesec40A%283%29.htm

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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19 May 2011 For Provisions of Sec 269SS & 269T see below link---

https://taxguru.in/income-tax/provisions-of-section-269ss-and-269t-under-income-tax-act.html

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