Sec 40A(3)

In case 3 invoice raised: Bill 1 rupees 6000, Bill 2 rupees 7000 and Bill 3 rupees 5000,
cash of 18000 is paid on same day.
Is it allowed or disallowed

Replies (8)
if from a same person , then no not allowed.
are u confirm??
read the provision ......it contains per person per day.....
yes 30% of the expenses will be disallowed
no , whole of the amount will be disallowed , kindly refer to the following :

Expenses or payments not deductible in certain circumstances.
40A.(3) Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, 18[or use of electronic clearing system through a bank account, exceeds ten thousand
rupees,] no deduction shall be allowed in respect of such expenditure.

but since I am a junior I would appreciate ,the seniors commenting on my reply .
thanks.
sorry Mr. Jai, I concur with your reply... actually I confused between 40(a)(ia) and 40A(3)

If payable to same person, 100% disallowed.Otherwise no disallowance upto Rs 10000

if payment is made to same person per day per transaction then also rs. 10000 applies as a whole?

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