DEAR FRIENDS,
OUR ONE OF THE CLIENT HAVING TRANSPORT BUSINESS HAS MADE PAYMENT EXCEEDING 20000 IN CASH (WHEN LIMIT U/S. 40 A (3) WAS 20000). TAX AUTHORITY HAS ADDED THE AMOUT, AND BY MISTAKE CLIENT HAS SUBMITTED CASH BOOK TO TAX AUTHORITY. ALL EXPENSES AR GENUINE.
CAN ANY ONE TELL IN THIS SITUATION WHAT GROUND SHOULD BE TAKEN TO SAVE OUR CLIENT FROM ADDITION....
THANKS IN ADVANCE...............
if payment made above 20000 in cash it is inadmissable only i dont think there are option avaiable after showing cash ledger because this itself an proof to tax authorites and this is correct actually while comptation of tax itself we should added back this and we have paid tax for this.
Only way out would be if you can prove that the cash payment were made in certain unavoidable circumstances..!!
CCI
Pro
CAclubindia
