Expenditure exceeds in cash rs.20000

Then it will be allowed.

Hi vignesh..first of all depreciation is non cash exps and next it is in Sec.32, so dis aloowance of it is not possible as Sec.40A(3) dosnt invoke in case of depreciation. Sec.40A(3) is related to Cash exps. So your view is wrong.

I m not agreed with all of above comment...................

Your rent is also not disallowed if u proov genueiness of your transaction. Section 40A(3) read with Rule 6DD. If your transaction is genuine than dont worry about it.

Hi, Bharat in that sense if we prove genuineness of each expenses then it shall never be dis aloowed and Sec.40A(3) wouldn't apply.. for e.g. let say Exps. of Rs.22,000/- in cash for telephone bill payment of a large co..will that be allowed??? if it will be allowed then assessee can provide receipt for any exps. so nthng will be dis allowed then??? i may be wrong but kindly clarify....

However as per Rule 6DD if there is genuine hardship to assessee, where it is difficult to locate bank or holiday then it wont be disallowed, but where you have all the facilities but u didnt utilise then it will surely be disallowed....

However as per Rule 6DD if there is genuine hardship to assessee, where it is difficult to locate bank or holiday then it wont be disallowed, but where you have all the facilities but u didnt utilise then it will surely be disallowed....

Dear Kaushik please refer following case law for prov yor transaction is whether genuine.

* Commisssioner of income tax  Vs Raja pal Automobiles (2010) 320 ITR 185

* CIT  Vs Ashola Steel Industries & Floor mill 293 ITR 192

* Chandra Pracha syntex ltd Vs CIT 46 TTJ

* AttarSing Gurmukh Singh Vs ITO 191 ITR 667

If u have any doubt plese mail: bharat11485 @ gmail.com