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Disallowance u/s. 40A(3)

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(Querist)
31 July 2020 If assessee withdraw an amount of Rs.35000 from his Bank A/c towards payment to creditors and deposited such amount in creditors account. Whether any dissallowance would be attracted?
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CA R SEETHARAMAN

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CA R SEETHARAMAN (Expert)
31 July 2020 Yes, such cash deposit into bank account will be considered as cash payment.

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