TaxGuru Newsletter Subscription
Information You Can Rely On.
Income Tax - Section 40A(3) was introduced by the Finance Act 1968 as a provision designed to counter evasion of tax through claims for expenditure shown to have been incurred in cash with a view to frustrating proper investigation by the Department as to the identity of the payee and the reasonableness of the payment....
Read MoreIncome Tax - Section 40A(3) and Section 40A(3A) deals with Disallowance of 100% of expenditure if payment is made by any mode other than account-payee cheque or draft in the year of expense or in the subsequent year / Years. Article explains provision of Section 40A(3) and Section 40A(3A) of Income Tax Act, 1961. Section 40A(3) of Income Tax [&hell...
Read MoreIncome Tax - Treatment of expenditures incurred by an assessee in excess of Rs. 20000/- (wef A.Y. 2018-19 Rs 10000/-) in cash or bearer cheque under section 40(A)(3) of the Income Tax Act, 1961...
Read MoreIncome Tax - The Government of India with an intention to evade black money and to discourage the cash transactions time and again taking various steps. Specially the Income tax Act is amended and provided with disallowances and stringent penal provisions for various types of cash transactions. Let us briefly understand some of such provisions here....
Read MoreIncome Tax - This article brings out the contradiction over the intention and implementation of amendment in section 11 so as to bring the disallowances u/s 40A(3) and section 40(a)(ia) in computation of income of the Trusts or other institutions claiming exemption u/s 11...
Read MoreIncome 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/– (Rupees Three Lacs) shall be invalid & illegal and would be a punishable offence, if amount is not paid by account payee cheque or account payee bank draft or use of electronic clearing system through a ban...
Read MoreKamta Prasad Mittal Vs Dy. CIT (ITAT Lucknow) - Kamta Prasad Mittal Vs Dy. CIT (ITAT Lucknow) It is an undisputed fact that a Demand Note was issued by BSNL requiring the assessee to make payments in cash and genuinity of the payments to BSNL was never doubted by the With regard to the observation of the ld. CIT(A) that BSNL is not a […]...
Read MoreM/s A Daga Royal Arts Vs ITO (ITAT Jaipur) - In the facts and circumstances of the case and in law, the ld. CIT(A) has grossly erred in confirming the action of ld. AO in disallowing the claim o f expenditure of Rs. 1,71,67,000/- by applying section 40A(3) of Income Tax Act, 1961. The action of the ld. CIT(A) is illegal, unjustified, arbitrary...
Read MoreSabita Panda Vs ITO ( ITAT Cuttack) - The provisions of section 40A(3) are not intended to restrict the business activities but to caution that payments exceeding Rs.20,000/- are made in cheque/draft. The provisions of section 40A(3) of the Act are to be in consonance with business expediency trade practice and other genuine relevant fa...
Read MoreACIT Vs Jasmine Buildtech (P) Ltd. (ITAT Delhi) - Question of disallowance under section 40A(3) would not arise, where assessee had not claimed the payments as expenditure, while computing its business income. ...
Read MoreIqbal Ahmed Khalil Ahmed Subedar Vs ITO (ITAT Mumbai) - These two appeals, filed by the assessee, being ITA No. 2135/Mum/2013 & I.T.A. No. 4896/Mum/2015 for assessment year 2009- 10 and 2008-09 respectively are directed against two separate appellate orders dated 22.01.2013 and 25-02-2015 respectively passed by learned Commissioner of Income Tax (Appeals...
Read MoreKamta Prasad Mittal Vs Dy. CIT (ITAT Lucknow) -
M/s A Daga Royal Arts Vs ITO (ITAT Jaipur) -
Sabita Panda Vs ITO ( ITAT Cuttack) -
ACIT Vs Jasmine Buildtech (P) Ltd. (ITAT Delhi) -
Iqbal Ahmed Khalil Ahmed Subedar Vs ITO (ITAT Mumbai) -
Sumit Industries Vs. ITO (ITAT Jodhpur) -
Deepak Mittal Vs. ACIT (ITAT Delhi) -
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.
— Tax Guru (@taxguru_in) September 18, 2018
