13 October 2010
If ABC Ltd. purchased stock worth Rs. 25000 from XYZ Ltd. on 25.06.10 and deposit cash of Rs. 25000 in SBI account or ICIC Bank or any national or local bank account, of XYZ Ltd, then It would be allowed or disallowed u/s 40A(3) of IT Act.
if allowed/disallowed due to any case law / circular / rule, then please refer it.
13 October 2010
Yes It will be disallowed as the single transaction value and payment amount is crossing the maximum limit. cash deposit to the paties Bank Account will be treated as cash payment.
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