If I make payment to same party for 3 times in a single day at cash as follows:
1st time 5000
2nd time 3000
3rd time 6000, the above amounts paid to the party will be disallowed under sec 40a3 right?
I do not know of any precedent but I think that words ".....assessee incurs any expenditure in respect of which a payment or aggregate of payments made..." seem to cover payment/ aggregate towards a particular expenditure incurred against a particular (singular) transaction. It could be argued that even if payment made in total exceeds 10k, if it was made in connection with separate transactions, may not run foul of provisions.
CAclubindia
