https://www.taxtmi.com/forum/issue?id=1664 Section 40A(3) constrains cash payments for business expenditure and may cause disallowance when payments are in cash to non account parties; purchase of land as a capital asset ordinarily falls outside that restriction because it is not business expenditure and land is not depreciable, though risk arises if land is treated as stock in trade or if an assessing officer extends the restriction to capital items eligible for depreciation; paying by account payee cheque reduces inquiry risk. en-us Mon, 21 Dec 2009 18:08:05 +0530 Thu, 23 Jan 2025 15:58:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1664 Section 40A(3) constrains cash payments for business expenditure and may cause disallowance when payments are in cash to non account parties; purchase of land as a capital asset ordinarily falls outside that restriction because it is not business expenditure and land is not depreciable, though risk arises if land is treated as stock in trade or if an assessing officer extends the restriction to capital items eligible for depreciation; paying by account payee cheque reduces inquiry risk. Discussion-Forum Income Tax Mon, 21 Dec 2009 18:08:05 +0530 https://www.taxtmi.com/forum/issue?id=1664