Dissallwance u/s 43 (a)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 October 2016 Dear experts, in one of the cases, assesee has made cash payments more than Rs20000/- for the maintenance of vehicles they own, such as purchase of tires, oil, and spares, for this assessing officer wants to dissallow the same under section 43 (a)
is it correct pl verify

Anand

Anand (Expert)
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13 October 2016 If the payment is made to a single vendor, on a single day then it will be difficult. If payment was made to multiple vendors or against different bills you can still have a case.(For e.g. Petty Cash payments made against different invoices)
Rule 6DD provides certain exceptions. You may examine whether on the date of payment there was a bank holiday/strike. You may also examine whether payment is in village or town where banking facilities do not exist and the recepient is a resident of said village. These exceptions will preclude a disallowance if the facts match your case.
The relevant section is 40A(3) and not 40(3)