Sec 40A(3)

I think in this case expenditure will not disallowed because payment of each bill did not cross 20000/- and cash payment given on same day for different bills hence it will be allowed as an expenditure.

SEC 40A(3)  read as under  " where in respect of Exp. for which payment is made exceds Rs.20000/-"""

 that menas both Exp and Payment should exceeds Rs.20000/- in your case since bill amount is less than Rs.20000/- payment can be made .it will not be disallowed

you may also read above section from ACT and interpert Accordingly

 Thanks

As per the recent amendement the definition is " where an assessee incure any expenditure for which, payment or aggregate of payment is made to a person in a day is in excess of Rs.20000 in cash the whole of such expenditure shall not be allowed as a deduction".

so based on above definition the whole amount of Rs. 48000 will be disallowed.

Agreed with Rachet.......it will be disallowed....!!!!

S 40A 3 "incurs any expenditure for which payment or aggregate of payment is made to a person in a day is in excess of Rs.20000"in cash the whole of such expenditure will not be allowed as a deduction

payment or aggregate of payment  made to a person in a day  in excess of Rs.20000 is dsallowed u/s 40A(3)..

yes, it will be dsallowed u/s 40A(3).. as the aggregate of  cash payment made in a day  exceeds  Rs20000

IN UR CASE IF U SEE , SCOPE OF SEC.40A(3):-

IF AN ASSESSEE MAKES PAYMENT OF 2 DIFFERENT BILLS(NONE OF THEM EXCEEDS Rs.20,000)/- AT THE SAME TIME IN CASH OR BY BEARER CHQ. SEC.40A(3) IS NOT APPLICABLE EVEN IF THE AGGREGATE PAY. IS MORE THAN RS. 20,000. THIS IS BCAZ OF THE FACT THAT SEC.40A(3) IS APPLICABLE ONLY IN RESPECT OF THE BILL AND THE AMOUNT OF AN EXP. WHICH IS IN EXCESS OF RS. 20,000. IN OTHER WORDS UNLESS THE AMT OF THE BILL AND THE AMT OF PAYMENT EXCEED RS.20,000 SEC.40A(3) IS NOT APPLICABLE..

SO SEC.40A(3) IS NOT APPLICABLE IN UR CASE....

SIRI.

Where the assessee incurs any expenditure in respect of which payment or aggregate of payments by cash made to a person in a day exceeds 20000 is disallowed u/s40a(3). 

disallowed totally.......................

Hello sir,

In my opinion the provisions of sec.40A(3) does not attaches to the problem as the individual payment in cash does not exceed Rs.20000. And hences, the expenditure so made is allowed as deduction.

Thanks. 

Originally posted by : pankaj
	I think in this case expenditure will not be disallowed because payment of each bill did not cross 20000/- and cash payment given on same day for different bills hence it will be allowed as an expenditure.

i agree with this answer..

" where an assessee incure any expenditure for which, payment or aggregate of payment is made to a person in a day is in excess of Rs.20000"

rs 48000 will be disallowed,but if mr.x purchase the same item from three different person then expenditure will be allowed as deduction.

disallowed totally.............