17 June 2010
Section 40A(3) does not apply to expenditure which is not to be claimed as deduction u/s 30 to 37. Purchase of air conditioner is capital expenditure. Under section 37, only revenue expenditure is deductibele. Hence 40A(3) is not applicable to purchase of air conditioner.
17 June 2010
But Mr.Bansal sec.40A(3) applicable even assessee purchase depreciable asset bycash more than Rs.20000 becasue depreciation claimed under sec.32.can you please clarify
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