Disallowance u/s 40a(3)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

25 March 2015 Dear Experts,

Our company has purchased a laptop from Flipkart amounting to Rs 25000/- under COD option.

Can we record this in our B/S or it will be disallowed u/s 40A(3) as it exceeds Rs20000/-

Please help.

Thanks in advance

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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25 March 2015 How come it will be disallowed U/s 40A(3).

It is an capital expenditure and will be capitalized.

For disallowance u/s 40A(3), it should first be allowed under B&P..