40A(3) disallowance

Akarsh Prince (47 Points)

11 October 2017  
Assume ABC & co. a partnership firm is dealing in Medicines. It incurred carriage expenses of Rs.11,000. The bill was booked in the name of firm & amount was paid in cash by a partner out of his personal money. Later his account was adjusted to give that effect. In the above will sec 40A(3) is applicable? If yes how?