CA Mukesh Goyal (Assistant Manager) (143 Points)
01 December 2012I would like to know if payment for purchase of a depreciable asset exceeding 20000 is made in cash, would provisions of Sec 40A(3) be invoked on the depreciation claimed on the asset... pls throw light on the matter...if possible with citations
CA Ruben Balooni
(Professionalism ™)
(1324 Points)
Replied 01 December 2012
Kindly refer the following link as the question which you have asked is 100% same (even language is same) as of the question asked in that link. It'll save the time for you and for others also.
/forum/cash-payment-exceeding-20000-in-case-of-fixed-asset-purchase-131963.asp#.ULmI6GfTonY
- Ruben balooni
Sanket
(!..Live to Give..!)
(16427 Points)
Replied 01 December 2012
No disallowance under sub-section (3) of section 40A shall be made where any payment in a sum exceeding[twenty thousand] rupees is made otherwise than by a crossed cheque drawn on a bank or by a crossed bank draft in the case of purchase of a Capital Asset.....
CA Mukesh Goyal
(Assistant Manager)
(143 Points)
Replied 01 December 2012
Thanks Sanket
But in the Ready Reckoner it is mentioned that Section 40A(3) is applicable even if an assessee purchases a depreciable assets.
I am little confused.
Amit Kumar Verma
(CA Final CS Professional)
(501 Points)
Replied 01 December 2012
jayesh
(Pursuing Final CA)
(98 Points)
Replied 01 December 2012
CAclubindia
