An assessee has made payment of Rs. 45,600/- to its supplier by cash (in a single day) against a bill of Rs. 1,04,500/- and the balance amount of Rs. 58,900/- was paid in next month by crossed cheque. What will be the amount of disallowance u/s 40A(3) of the I. T. Act.
16 October 2012
I am not agreed with the expert,,, IF it is paid for purchase then the 45600 shall be disallowed as it was paid by cash which exceeds the threshold limit .. and also the balance shall be disallowed if it is not paid by "AN ACCOUNT PAYEE" cheque.. now the word an account payee has been substituted in place of "crossed"...
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