payment more than Rs.20000/-sec.40A(3)

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manoj

manoj (Querist)
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13 August 2009 Whether purchase of land(only land,no building) by cash more than Rs.20000/-is allowable or not?

C.A Rohit Gambhir

C.A Rohit Gambhir (Expert)
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13 August 2009 Disallowance is only for those items which are charged to Profit & Loss Statement. For Capital Expenditure there is no disallowance u/s 40A(3).

manoj

manoj (Querist)
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13 August 2009 thanks.but as per V.k.Singhania book para49.3-3,Section 40A(3) is appilicable even if an assessee purchase a depreciable asset.So whether it is applicable to depreciable asset & Disallowance of depreciation.

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