Poonawalla fincorps
Poonawalla fincorps

Section 40A(3)

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(Querist)
21 September 2008 A payment is made for purchases by depositing cash into the bank account of the seller by the buyer, if exceeds Rs 20000/- will that be liable to be disallowed under Section 40A(3) of Income Tax? Pls Advise
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CA RAMESH KUMAR AHUJA

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CA RAMESH KUMAR AHUJA (Expert)
22 September 2008 Yes, it is disallowable.
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Bhaskaran Chackrapani Warrier

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Bhaskaran Chackrapani Warrier (Expert)
22 September 2008 No,it is allowable as per the decision of Bangalore ITAT in Sri Renukeswara Rice Mills vs.ITO (2005) ITR 77.
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