Section 5 - Amendment of Section 40A - Finance Act, 1969

5. Amendment of Section 40A In section 40A of the Income-tax Act, after sub-section (3), the following sub-section shall be inserted, namely :- (4) Notwithstanding anything contained in any other law for the time being in force or in any contract, where any payment in respect of any expenditure has to be made by a crossed cheque drawn on a bank or by a crossed bank draft in order that such expenditure may not be disallowed as a deduction under sub-section (3), then the payment may be made by such cheque or draft; and where the payment is so made or tendered, no person shall be allowed to raise, in any suit or other proceeding, a plea based on the ground that the payment was not made or tendered in cash or in any other manner. .