Reimbursement paid to employee attracts sec 40a(3) or not?

This discussion clarifies whether employee reimbursements, specifically when an employee pays in cash and is reimbursed by cheque on the same day, attract Section 40A(3). The consensus is that it generally does not, as the company's payment is to the employee via bank, not directly in cash for the expense. The expense is recorded as paid to the employee, and the subsequent bank payment to the employee settles this. Therefore, the employer has not made a direct cash payment exceeding the limit.