For example building tax amount is transferred to another person bank Rs.30000, that person paid that amount, in the assesse books Rs.30000 is dissallowed or not? Please reply urgent
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Quick Summary
This discussion concerns the deductibility of business expenses under Section 40(A)(3) of the Income Tax Act when the payment is made through another person's bank account. The core question is whether a Rs. 30,000 payment, made via a third party's bank account but ultimately settled by the assessee, is an allowable expense. The consensus suggests that based on the principle of substance over form, if the expense is genuinely related to the business, it should be allowed, even if a third-party bank account was used for the transaction.