Tag Archives: Cash Payment

Section 40A(3) of Income-tax Act 1961 :Disallowance of cash payments

Section 40A(3) of Income-tax Act 1961 As per Section 40A(3) of Income tax Act – Disallowance  of Expenses if Paid in cash Exceeding Rs 20000 Section 40A of Income tax act deals with certain circumstances in which Expenses or payments not deductible  As per Section 40A(3) of Income tax Act :- Where the assessee incurs any expenditure in… Read More »

Cash Payment Exceeding 20000 can be made if genuineness of transactions and payment and identity of the receiver are established

Held Tribunal has not disbelieved the transactions or the genuineness thereof. Nor has it disbelieved the fact of payments having been made. More important, the reasons furnished by the appellant for having made the cash payments, which we have already adverted to, have not been disbelieved. In our view, assuming these reasons to be correct,… Read More »