Can Any guide that whether amount paid for purchase of capital asset be disallowed u/s.40A(3) if payment is in cash inexcess of Rs. 20000/-
18 Replies
FATEMA
(CHARTERED ACCOUNTANT)
(719 Points)
Replied 20 September 2010
Dear Moin,
Purchase of asset is a capital expenditure,It is not debited to Profit & Loss Account so the question of disallowance u/s 40 A(3) does not arise.
Regards,
Fatema
Ashish Ojha
(Chartered Accountant)
(469 Points)
Replied 20 September 2010
True... Even if 100% depreciation is allowable in the first year, or it is a Scintific Research Asset.. It will not be an expenditure and thus it cannot bge disalowed U/s 40A(3)
Saurabh Toshniwal
(ca final)
(2363 Points)
Replied 20 September 2010
| Originally posted by : FATEMA | ||
 |
Dear Moin, Purchase of asset is a capital expenditure,It is not debited to Profit & Loss Account so the question of disallowance u/s 40 A(3) does not arise. Regards, Fatema |
 |
Manoj BG
(Tax Professional and in Service)
(1795 Points)
Replied 21 September 2010
AGREED WITH EXPERTS
CA.G.Muguntha Narayanan
(Internal Auditor at TVS Motors)
(2195 Points)
Replied 21 September 2010
accept with the experts views above
vipul maheshwari
(CA FINAL )
(44 Points)
Replied 21 September 2010
purchase of capital assets is outside the purview of 40(A)(3)
Abhishek Jain
(RisK Manger)
(231 Points)
Replied 21 September 2010
section 40 (A) (3) of Income Tax act 1961 does not applies to purchase of capital goods
suneet
(CA FINAL)
(421 Points)
Replied 24 September 2010
section 40 (A) (3) of Income Tax act 1961 does not applies to purchase of capital goods
it is true
but depreciation on such assets are disallowed
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