Dis- allowance expenditure

Praveen Kumar (learner) (51 Points)

06 August 2021  

Respected professionals please clarify my doubt regards disallowance expenses under section 40(A) 3 

During my audit verification i had found that one expenditure made my business towards JCB works

Invoice issued by Sri Earth Movers on 15.07.2021 of r.s 14000. payment was made by the business entity on 16.07.2021. These payments were settled on two times on same day 9000& 6000 respectively ( Received by Different persons on same bill)  whether it should be allowable expenditure or not.

And also clarify that Disallowance should be calculated on invoice basis or person basis