Allowance of expenditure exceeding rs 20000/-

CA Sunil Kumar Dudeja (Student) (135 Points)

16 December 2013  

Dear Friends 

I have an urgent query regarding the purchase expenses allowed u/s 40A(3),Assessee having a business of outdoor catering of events, marriages etc,he purchases vegetables,mlik,spices & other conumables in cash of exceeding Rs 20000/- in a single day to single person,whether such expenses are allowed or not or added in income of PGBP?

My another question is whether purchase of Fixed Assets in cash of exceeding Rs 20000/- is allowable or not?

Thanks in advance