15 March 2013
Dear Colleagues, A owes money to B , B owes money to C, C owes money to A All these are due to purchase /sale transaction between them, all are unrelated/unassociated. Now suppose B gives letter to A saying: A CAN DEBIT ACCOUNT OF B BY CREDITING ACCOUNT OF C WHICH SHALL BE TREATED AS PAYMENT BY A TO B Querry:What is the repercussion under sec 40A(3) of Income tax Act REGARDS C.A.PARESH ZATAKIA 9833855518
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