Patel, a textile dealer, purchases goods worth ₹65,000 from Anand and made the payments: (i) ₹12,000 by account payee cheque on 5th June, 2018, (ii) ₹8,000 by cash on 16th August, 2018, (iii) ₹15,000 by bearer cheque on

CS Executive · Tax Laws and Practice · PYQS · June 2019
Patel, a textile dealer, purchases goods worth ₹65,000 from Anand and made the payments: (i) ₹12,000 by account payee cheque on 5th June, 2018, (ii) ₹8,000 by cash on 16th August, 2018, (iii) ₹15,000 by bearer cheque on 7th November, 2018 and (iv) ₹30,000 by ECS on 21st March, 2019. The amount of expenditure not allowable as per provisions of section 40A(3) would be :
(A) NIL
(B) ₹8,000
(C) ₹23,000
(D) ₹38,000

Answer & Explanation:

The official key records '*'. This question is excluded from automatic grading because the source does not supply an unambiguous valid choice. Official source note: None of the option is correct. Correct Answer is ₹ 15000.

Topics: Income Tax Act, 1961

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