21 June 2010
Read the relevant clause "Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be Allowed in respect of such expenditure" Any expense includes directors sitting fee also hence it shall be disalloved if >20000
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