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Disallowed
As per section 40(A)(3) of the Income-tax Act,1961, where an assessee incurres any expenditure in respect of which a payment or aggregate of payment made to a person in a day otherwise by mode other than account payee cheque in excess of 20,000 shall be disallowed.
In the given case the Company has made payment to the Hotel (a single person - an assessee) in excess of 20,000. Hence, the entire expenditure will be disallowed.
Replies (3)
Yes. Disallowed. Entire Amount
but there is an option that half the amount u can show on a date prior as an advance and remaining on final day when u r leaving hotel or something like this ...
else the whole amount will b disallowed...
Yes you can show half of the amount on prior date but that will too exceeds 20000 and as such disallowed..
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