Disallowance of business expenditure u/s 40A(3). - Income Tax - 213/CBDT

INSTRUCTION NO. 213/CBDT Dated: September 3, 1970 Section(s) Referred: 40A(3) Statute: Income - Tax Act, 1961 Attention is invited to Chairman's D.O.F.NO.133(31)/70-TPL dated 27th August, 1970 to all the CsIT, on the above subject. In view of the fact that amendments to the Rules relating to Section 40A(3) are under consideration of the Government, immediate instructions may please be issued to all the ITOs in your charge, not to complete assessment proceedings for the year 1970-71, in cases where payments for business expenditure are to be disallowed u/s. 40A(3) of the I.T.Act,1961. Other assessments for 1970-71 where these provisions do not come into play need not be held up.