Disallowance u/s 40a 3
WebOct 23, 2024 · No disallowance under sub-section (3) of section 40A shall be made and no payment shall be deemed to be the profits and gains of business or profession under sub-section (3A) of section 40A where 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 [account … WebPayments Disallowed u/s 40A(3) ... Hence no further disallowance u/s 40A(3) is permissible- CIT V. Smt Santosh Jain[2008] 296 ITR 324(P&H). Note: The limit of Rs 20,000 has been reduced to Rs 10,000 from A.y …
Disallowance u/s 40a 3
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WebMar 10, 2016 · The payments cannot be disallowed under Section 40A (3) of the Act.” In the present case, the genuineness of payment has not been doubted as Assessing Officer himself has held that sale deeds of properties were registered with … WebJul 26, 2024 · Accordingly, ITAT held that disallowance under Section 40A (3) attracts if the assessee makes the payment in excess of Rs. 20,000 in a day to any person with regard …
WebSection 40A (3): Disallowance of expenses made in Cash and Exceptions. Section 40A (3) came into existence in order to disincentivise cash transactions. It is an important section of the Income Tax Act, 1961, designed to reduce tax evasion and increase accountability. In short, all payments should be made in demand draft/cheque. Webthe payment is otherwise in violation of section 40A(3) of the Act. As such payments were made in violation of the provision, we hold that the disallowance u/s.40A(3) has been rightly confirmed in the first appeal. 10. In the result, the appeal is dismissed. Order pronounced in the Open Court on 10 th May, 2024. Sd/- Sd/-
WebSep 7, 2024 · After considering the submissions of the assessee on the propsed disallowance, the AO ultimately disallowed the said expenditure u/s 40A(3) of the Act. … WebThe total amount of expenditure being disallowed causes undue hardship. Non-deduction or non-payment of TDS on payments given to residents as described in section 40 (a) …
WebFeb 21, 2011 · Payments Disallowed u/s 40A(3) & 40A(3A): As per section 40A(3) w.e.f 2009-10, where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a …
WebFeb 11, 2024 · The disallowance made under Section 40 (a) will only go to enhance the business profit of an assessee whose income is assessable under Section 28 and not otherwise. Hence, provisions of Section 40 (a) are not applicable in case of charitable trust or institution where income and expenditure is computed in terms of Section 11. michael covertWebtherefore, the disallowance u/s.40A(3) of Rs.2,47,380/- so made by him could not be sustained and was liable to be struck down. Elaborating on his aforesaid contention, it was submitted by the Ld. AR that as the disallowance of the aforesaid amount in question u/s.40A(3) of the Act was not in the nature of a michael covey bridgewaterWebSHRI YOGESH KUMAR U.S., JUDICIAL MEMBER I.T.A. No. 1257/DEL/2024 (A.Y 2012-13) ... 3. That the disallowance of Rs. 501,952,442 upheld by the learned CIT (Appeals) erroneously includes the chargeable sum ... chargeable sum paid is liable to be disallowed u/s 40a(ia) of the Act. The CIT(A) is of the opinion that no disallowance could be made … how to change channel name in teamsWebMay 20, 2024 · In this article, you will observe the extracts of Section 40(a) (ia) and Section 40a (3) of the Income Tax Act, 1961. It will explain the … michael covey austinWebFeb 21, 2024 · Conclusion: Disallowance under section 40A (3) with respect to cash payment made by assessee to farmers on Sunday for purchase of agricultural land could not be disallowed as Sunday was bank holiday and rule 6D (J) was clearly attracted in assessee’s case as payment was made due to commercial expediency. michael covey lawyerWebDec 10, 2024 · The AO proposed to disallow the expenditure incurred in cash in excess of Rs.20,000/- in cash u/s.40A (3) of the Act. The Assessee pleaded that the payment in question was made for purchase of Maize agricultural produce to the cultivator of the produce and hence no disallowance can be made u/s.40A (3) of the Act read with Rule … how to change chainsaw chainWebJul 12, 2024 · Disallowance under section 40 (a) (i) shall be attracted if: Condition 1: The amount paid or payable is interest, royalty, fees for technical services or any other sum chargeable under I.T. Act. The aforesaid sums must be taxable in the hands of the recipient under the I.T. Act. Condition 2: The aforesaid sum is paid or is payable: how to change challenger uniform in pokemon