Sec 40A(3)
This query is : Resolved
24 September 2009
When an assessee deposited the cash more than 20,000/- directly to the Bank Account of the Suppliers through core banking system, are those payments inadmissible U/S 40A (3) of
IT Act?
IT Act?
24 September 2009
Yes, the deposit in cash involves two transactions.
1. Cash payment to the supplier.
2. And cash deposited in bank on behalf of that supplier.
As such, cash payment to supplier is covered u/s 40A(3).
1. Cash payment to the supplier.
2. And cash deposited in bank on behalf of that supplier.
As such, cash payment to supplier is covered u/s 40A(3).
24 September 2009
It is not admissible in view of Rule 6DD r.w.s 40(A)(3).
24 September 2009
such payment are allowable expenses....
here origin and conclusion of the transaction must be traceable.....
Sri Renukeswara Rice Mills V. ITO (2005) 93 ITD 263 (Bang.)
here origin and conclusion of the transaction must be traceable.....
Sri Renukeswara Rice Mills V. ITO (2005) 93 ITD 263 (Bang.)
25 September 2009
It is not admissible. Sec. 40A not amended yet to coverup such transaction.
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