Disallowability of expenses U/s 40 A (3) of I.T. Act

yes provisions of sec. 40A (3) will attract because you can not pay more than 20000/- in a single day.

In my openion the provisions will apply to the company making payment i.e. X co.

Sir,

Please clarify with supporting text from the Section..

for X co.. expenditure will bw disallowed.. because he has made payment to the party on behalf of  A co.. In A co expenditure is allowed

It is a capital expenditure,so no question of allowing and disallowing of expenses under 40 A (3) of I.T. Act

Super like for sunil.

Originally posted by : Sunil Kumar V.Peruru
	Under section 40A(3)Expenses are disallowed if payment is made violating the rules, like payment in cash. Purchase of TMT bar is not a revenue expense to claim. Because it is a capital expenditure which is capitalized to asset there is no relevance of section 40A(3).

Agree with Mr. sunil

AGREE WITH SUNIL

Proportinate Depreciation will be disallowed in Assessment by IT Authority