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Section 40A(3)

Latest Articles


Electricity bill payment in cash: Allowed or not?

Income Tax : Learn if cash payments over ₹10,000 for electricity bills are allowed under Section 40A(3) of Income Tax Act. Understand exempti...

September 30, 2024 5076 Views 0 comment Print

Restrictions on Cash Payments Under Income Tax Act on certain transactions

Income Tax : Section 40A(3) restricts cash payments exceeding ₹10,000 in business transactions. Exceptions apply for specific cases like tran...

September 10, 2024 5751 Views 0 comment Print

Navigating Cash Clarity: Ensuring Tax Compliance in Real Estate Deals

Income Tax : Explore the rules and regulations governing cash transactions in real estate deals to ensure tax compliance. Learn about permissib...

May 13, 2024 1275 Views 0 comment Print

जीएसटी/आयकर एक्ट में नगद व्यवहार के नियम

CA, CS, CMA : जानें जीएसटी और आयकर एक्ट में नकद संव्यवहार के नि...

May 10, 2024 3072 Views 0 comment Print

Section 40A: Expenses or payments not deductible in certain circumstances

Income Tax : Dive into critical tax regulations and provisions, from related party payments to cash disallowance, and learn how they impact you...

November 1, 2023 13167 Views 0 comment Print


Latest News


SIT report: Restrict Cash Transaction/Holding to curb black money

Income Tax : It is suggested that there should be a positive provision under the I.T. Act that any transaction involving more than Rs.3,00,000/...

July 14, 2016 23965 Views 0 comment Print


Latest Judiciary


Section 40A(3) cannot be invoked as income estimated based on gross profit rate

Income Tax : ITAT Delhi held that invocation of provisions of section 40A(3) of the Income Tax Act not justifiable as income is estimated on th...

July 1, 2025 174 Views 0 comment Print

ITAT Restores Assessment Due to Non-Consideration of Submitted Evidence

Income Tax :  The ITAT Cochin has remanded the Manarkattu Theatres case to the Assessing Officer for fresh adjudication, citing the failure of...

June 25, 2025 222 Views 0 comment Print

ITAT Deletes ₹6.55 Lakh Section 40A(3) Addition for Capital Asset Payments

Income Tax : ITAT Cochin ruled that Section 40A(3) disallowance does not apply to cash payments for capital assets when no revenue deduction wa...

June 25, 2025 219 Views 0 comment Print

Addition u/s. 68 towards cash deposit in bank not sustained as source explained: ITAT Jaipur

Income Tax : ITAT Jaipur held that addition under section 68 towards cash deposit in bank as unexplained cannot be sustained since source of ca...

June 16, 2025 567 Views 0 comment Print

Delhi HC upholds addition for unpresented cheques as bogus credits

Income Tax : Delhi High Court upholds addition for unpresented cheques as bogus credits in Harsha Associates case, emphasizing factual evidence...

June 14, 2025 2802 Views 0 comment Print


Latest Posts in Section 40A(3)

Section 40A(3) cannot be invoked as income estimated based on gross profit rate

July 1, 2025 174 Views 0 comment Print

ITAT Delhi held that invocation of provisions of section 40A(3) of the Income Tax Act not justifiable as income is estimated on the basis of gross profit rate. Thus, disallowance u/s. 40A(3) set aside and appeal stands allowed.

ITAT Restores Assessment Due to Non-Consideration of Submitted Evidence

June 25, 2025 222 Views 0 comment Print

 The ITAT Cochin has remanded the Manarkattu Theatres case to the Assessing Officer for fresh adjudication, citing the failure of lower authorities to consider assessee’s submissions and evidence.

ITAT Deletes ₹6.55 Lakh Section 40A(3) Addition for Capital Asset Payments

June 25, 2025 219 Views 0 comment Print

ITAT Cochin ruled that Section 40A(3) disallowance does not apply to cash payments for capital assets when no revenue deduction was claimed, overturning a ₹6.55 lakh addition.

Addition u/s. 68 towards cash deposit in bank not sustained as source explained: ITAT Jaipur

June 16, 2025 567 Views 0 comment Print

ITAT Jaipur held that addition under section 68 towards cash deposit in bank as unexplained cannot be sustained since source of cash deposited duly explained. Accordingly, addition of around Rs. 8.60 Crores deleted.

Delhi HC upholds addition for unpresented cheques as bogus credits

June 14, 2025 2802 Views 0 comment Print

Delhi High Court upholds addition for unpresented cheques as bogus credits in Harsha Associates case, emphasizing factual evidence in tax disputes.

Adhoc disallowance of expense without contrary material not justifiable: ITAT Delhi

June 4, 2025 207 Views 0 comment Print

ITAT Delhi held that disallowance of expenditure on adhoc basis without contrary material and without rejection of books of accounts not justifiable. Accordingly, disallowance made in the impugned order deleted.

Section 43B not attracted in respect of electricity duty: ITAT Delhi

June 3, 2025 468 Views 0 comment Print

ITAT Delhi held that provisions of section 43B of the Income Tax Act is not attracted to the licensee/assessee in respect of electricity duty. Thus, question is answered in favour of the assessee and hence appeal of revenue dismissed.

ITAT Upholds Section 40A(3) Addition for Cash Payments

May 20, 2025 492 Views 0 comment Print

ITAT Chennai upholds disallowances for Devcare Solutions: Cash payments exceeding limit disallowed u/s 40A(3), technical fees disallowed for lack of proof.

Section 40A(3) not invocable as income assessed at flat gross profit rate: ITAT Chennai

April 18, 2025 297 Views 0 comment Print

Aggrieved against the directions of CIT(A) to the AO for assessment of gross profit on unaccounted sales of unaccounted purchases and enhancement on account of disallowance of cash payment u/s.40A(3) of the Act, the assessee came in appeal before the Tribunal.

Provisions of section 40A(3) inapplicable as income assessed by applying G. P. rate

April 17, 2025 360 Views 0 comment Print

ITAT Raipur that where the income of the assessee has been computed by applying a gross profit rate, there is no need to look into the provisions of Section 40A(3) of the Income Tax Act as gross profit rate takes care of expenses otherwise than by way of crossed cheque.

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