Ravi & Co. Paid ₹ 40,000 by cash to Mr. Balu a supplier on 5.9.2019. The cash payment was made on the day on which the bank was on strike. The amount of expenditure liable for disallowance under section 40A(3) is –
A. ₹ 40,000
B. ₹ 12,000
C. ₹ 20,000
D. Nil
Answer:D
Ravi & Co. Paid ₹ 40,000 by cash to Mr. Balu a supplier on 5.9.2019. The cash payment was made on the day on which the bank was on strike. The amount of expenditure liable for disallowance under section 40A(3) is –
A. ₹ 40,000 B. ₹ 12,000 C. ₹ 20,000 D. Nil