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2002 (12) TMI 69 - HC - Income TaxPayments in Cash - The petitioners in these original petitions are income-tax assessees engaged in business. They are challenging the provisions of section 40A(3) of the Income-tax Act, 1961, which provides for 20 per cent. disallowance of expenditure in excess of Rs. 20,000 where such payments are made other than through account payee cheques or demand drafts drawn on a bank. The computation of income has to be therefore subject to statutory provisions and Parliament is absolutely competent to fix ceiling on expenditure and lay down conditions for allowance. Therefore, I do not find any merit in the contentions raised by the petitioners and the original petitions are accordingly dismissed.
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