If an advance of Rs. 50000 in cash is given to an employee for travelling purpose and the employees pays cash for ticket amounting to Rs. 25000, will ticket expense be disallowed u/s 40A(3) to the company?
If an advance of Rs. 50000 in cash is given to an employee for travelling purpose and the employees pays cash for ticket amounting to Rs. 25000, will ticket expense be disallowed u/s 40A(3) to the company?
book adjustments as per rule 6DD means set off of different transactions.but in ur case both adjustments are relating to same transactions,i.e u give advance of rs 50000 and book entry passed as advance for travelling expenses and set off rs 25000 against advance given to travelling expenses as both are relating to same transaction it would be disallowed under section 40A(3)
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