26 February 2011
In an audit of Pvt. Ltd. Rs.25000 was directly deposited into the Bank account for petty cash. Whether the same attracts Section 40(A)(3)?
I suggested them to split the entry into two transaction each of12500. Whether the solution is correct or is there any other solution?
26 February 2011
If cash was deposited in bank and no expenses were booked i. e. cash in hand deposited in bank then no disallowance u/s 40A(3) called for.
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