Tribunal held that the assessee was doing the business in remote areas and the amounts were paid for making labour charges and for making certain purchases, where, it was very difficult to make payment through banking channels. The proviso attached to sub-section (3) of S.\u00a040A\u00a0is to rescue the assessee from the rigour of disallowance under S. \u00a040A(3). Thus no disallowance can be made. As regards of\u00a0 payment of machine charges, the AO is directed to verify whether the payment is less than Rs 20000 per day and decide the matter.\u00a0 (AY.2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40A(3) : Expenses or payments not deductible-Cash payments exceeding prescribed limits\u2013Cash paid for labour charges and purchases-Business in a remote area-Disallowance is held to be not valid-Machine hire charges\u2013less than Rs. 20000 per day\u2013AO is directed to verify and decide. [S. 40(a)(ia)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10940","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Qs","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10940"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10940\/revisions"}],"predecessor-version":[{"id":10941,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10940\/revisions\/10941"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10940"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10940"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}