Splitting of cash payment disallowed?

Nupur

cann u confirm me whether u  r talking abou finacial year 2004-2005 or some what elseeeeeee........

Its financial year 2004-05

Nupur

I you talking about 2004-05 , then it will not be dis allowed , As from Ast, year 2009-10 , payment made to person more than 20000 by cash in a day then whole amount is disallowed. But for F.Y. 2004-2005 , the limit is based on "EXPENDITURE" not on PAYMENT so if you make payment to contractor via diffrenet bill then you are totallly under law .

As far as concerned by case law , i dont know exactly the case law but on plain reading of law & its clarification you are done ur job as per law & order........

Hope now you are clear.............

Payment exceeding Rs 20000/- in a single day to same person but for different bills is allowed. Refer case Shri Ram v/s CIT