TaxTMI 
TaxTMI 
Applicability of section 40a(3)
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....pplicability of section 40a(3)<br> Query (Issue) Started By: - SPJV Company Dated:- 27-10-2009 Last Reply Date:- 1-11-2009 Income Tax<br>Got 2 Replies<br>Income Tax<br>assesee depoists cash into suppl....
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....ier bank accounts exceeding rs 20000/- , will 40a(3) dis allowance be applicablke Reply By DEV KUMAR KOTHARI: The Reply: Please do your ground work completely and send query with full facts and deta....
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....ils. Under what circumastances payment by way of a/c payee cheque or DD was not possible? why cash was deposited instead of cheque? These to be enquired and reasonable cause for deposit in cash is to ....
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....be established.Holidays of clearing on the same day or next day or delay in clearing causing hardship could be reasonabe causes. Payment in cash to prompt delivery/ despatch of urgent material or to m....
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....eet some urgency at payyes end could be good grounds. Deposit in cash in a/c of payee is equal to cash payment to which S. 40A (3) apply. You may refer to K. Abdu & Co. V Income-tax Officer, Ward-3, C....
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....annanore 170 Taxman 297. Reply By Rama Krishana: The Reply: It appears that direct deposit of amount into the supplier's bank account is not a valid ground to escape from the provisions of section 4....
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....0a(3) read with rule 6DD. You may face the consequences, if you failed to provide the valid, justifiable and acceptable reasons for doing so.<br> Discussion Forum - Knowledge Sharing ....