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| The Tax Publishers2020 TaxPub(DT) 1490 (Del-Trib) : (2020) 078 ITR (Trib) 0221 INCOME TAX ACT, 1961
Section 40A(3)
Travelling expenses were reimbursed to different employees for the period of 15 days and more in some cases and amount involved was also found to be less than Rs. 20,000. Hence, from ledger account of travelling expenses, it could easily be gathered that section 40A(3) was not applicable in the instant case and, therefore, addition made by AO under section 40A(3) was deleted.
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Business disallowance under section 40A(3) - Cash payment in excess of prescribed limit - Travelling expenses -
AO made disallowance under section 40A(3) of Rs. 9,53,500 simply observing that the travelling expenses paid to employees to the extent above had been incurred by assessee in cash exceeding Rs. 20,000 and payments had been made to a person in a day. Held: As evident, travelling expenses were reimbursed to different employees for the period of 15 days and more in some cases and amount involved was also found to be less than Rs. 20,000. Hence, from ledger account of travelling expenses, it could easily be gathered that section 40A(3) was not applicable in the instant case and, therefore, addition made by AO under section 40A(3) was deleted.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
INCOME TAX ACT, 1961
Section 68
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