28 April 2012
Thank you Mr. Gupta. cash payment exceeding Rs. 20000/- disallowed under I.Tax Act for business expd. but under this situation the individual acquired capital asset i.e plot of land by paying cash. so, in my view it is nout of the perview of section 40)A)3. Please comment.
28 April 2012
yes, it is sectioned covered for business & profession but the section does not specified that Rs. 20000/- is limit for business expenditure. I have seen the cases where A O has enforce the section, if assessee has business income and spend cash for personal property.
Till the case is not in scrutiny, you will not face any problem. all depends on how AO views the case.
17 May 2012
land purchased as stock in trade for business purpose in real estate business ( Not as investment in plot) will be covered u/s. 40A(3), as purchase cost is treated as expenditure for business.
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