My client is a film producer. during 2007-08 financial year they have produced one film. During production they went to vizag for shooting.On that occasion they have stayed in hotel.at the time of vacation of hotel room, The hotel management shall not accepted the cheque payment.The have demanded immediate cash payment.So my client has paid the amount in cash which is above 20000. the AO wants to disallow the above amount U/s40A(3).Plaese give me immediate feedback.
Note: The hotel management not accepted the cheque because of fear of dishonour.
CAclubindia
