Explain by giving brief reasons, whether the following statements are true or false, with regard to the provisions contained in Income-tax Act, 1961: (a) Payment made through a cheque duly crossed as "& Co" in respec

False: As per section 40A(3) of the Income Tax Act, 1961, Where the assessee incurs any expenditure in respect of which a payment or aggregate of payments made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, or use of electronic clearing system through a bank account, exceeds ten thousand rupees, no deduction shall be allowed in respect of such expenditure. In the present case, the payment of ₹45,000 made by cheque crossed as "& Co" will not be allowable. The same will be disallowed u/s 40A(3) of the Income tax Act, 1961 as the cheque is not crossed as account payee.