Cash Payment Disallowance

hello my frnd,.. this is one such question which has varied opinions,.. going by the plain words of the sectin 40a(3),both the bill amount(expenditure) and the payment amount should exceed 20,000 so as to attract the disallowance,..in the present case as individual bills have been raised,and also all the bill amounts do not exceed 20,000,this is an ALLOWABLE EXPENDITURE.IT WILL NOT ATTRACT ANY DISALLOWANCE. but if we go by the legislative intent,this section was mainly introduced so as to avoid these type of duped and fraud methods of putting bills less than 20,000 and claiming allowances under tax audit,.therefore since the bills are in respect of the SAME EXPENDITURE,AND THE PAYMENT ALSO EXCEED RS 2000 TO THE SAME PERSON N A DAY,SECTION 40A(3) WIL BE ATTRACTED,. SO ON THE WHOLE U CAN TAKE STAND ON BOTH THE SIDES ,...

sECTION 40A(3)  =====   hit

As per Sec 40a(3) the following condition fulfilled then disallowance will occur :-

1. Single Day

2. Single Bill

3. Single Party

more than Rs 20,000 then disallowance will be attracted.