In my opinion it should be disallowed

Section 40A(3) of the income tax act says that if the assessee makes any payment or receipt, expect from cross payee cheque or dd or any banking mode, exceeding Rs. 20000 to a single party is disallowed and treated as the personal expenditure or receipt of the assessee.
 

It is dissallowed.

As per Section 40A(3) "Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds twenty thousand rupees, no deduction shall be allowed in respect of such expenditure."

Here each invoice shall mean a separate expenditure. Since in your case each invoice is less than 20,000, hence the expenditure shall be allowed.

- Ruben Balooni

well said "Ruben Balooni"(

ur alsolutely ryt :)

Mr. Anuj Jain - In short---Expenditure as well as payment should be exceed 20000rs to be disallowed.

Originally posted by : Raj Kr
	well said "Ruben Balooni"( ur alsolutely ryt :)

Thanks :)

As per the provisions of sec40A(3), an expenditure shall be disallowed only when both the expenditure and payment amount exceed Rs20000. 

The said expenditure should be disallowed as Sec.40(A)(3) contemplates disallowance for payment other than an account payee cheque to a particular person in one single day in excess of Rs.20000