Ca final november, 2014 audit exam

Page no : 4

Abhilash Bhandari (Student) (34 Points)
Replied 12 November 2014

@ tushar agreed.. Lol

rohit (article) (21 Points)
Replied 14 November 2014

Disallowed as section 40A(3) said exceeding 20000 cash payment in single day either by spiliting or bulk paymnt.

Arpit Saraf (article assistant) (27 Points)
Replied 16 November 2014

As per section 40(A)(3) of the Income-tax Act,1961, where an assessee incurres any expenditure in respect of which a payment or aggregate of payment made to a person in a day otherwise by mode other than account payee cheque in excess of 20,000 shall be disallowed. In the given case the Company has made payment to the Hotel (a single person - an assessee) in excess of 20,000. Hence, the entire expenditure will be disallowed.

Arpit Saraf (article assistant) (27 Points)
Replied 16 November 2014

neha pritmani (ca) (182 Points)
Replied 17 November 2014

it should be disallowed as the prov of section 40A(3) clearly states that expense is disallowed were payment made exceeds rs 20000 in a single day to a single person.

ravindra kumar jaiswal (ravindrajaiswal) (28 Points)
Replied 19 November 2014

Disallowed u/s40a (3)

Mohit (CA) (755 Points)
Replied 29 November 2014

But Vinod Gupta Module 2 has a similar sum.. It says different bills means different expenditures.. And 40(A)(3) says expenditure in respect of which single person single day... But here different bills means different expenditures right... N d main object is to curb flow of Black Money... If there are 6 different genuine bills n all bills less than 20000 each n paid at one shot in cash, it means in Tally or any accounting package we would have passed 6 different expense entries for Control purpose... Seriously there is some more clarity needed with respect to this as in whether different bills from same party constitutes same expenditure or different expenditures...