In a hotel industry if it accepts advance against room rent and after transaction pays the balance advance back in next financial year in cash so will sec40A(3) will apply or sec 269SS & 269T will apply or not or if any other section applies then please state.
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Section 269 SS and T do not cover advances of money recived in the normal course of business i.e against supply of goods or services. In the hotel industry advance is received for supply of services and facilities. Such advances are not covered by 269 SS or T. 269 SS/T covers only loans - i.e financial assistance of a capital nature.
Section 40A9(3) will apply only for expenditure and not for advances
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