Section 40A(3) of the Income-tax Act, 1961--Payments in excess of Rs. 2,500 to be made by crossed cheques or crossed bank drafts--Suspension of clearing operations by banks--Clarification regarding

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nsion of clearing operations by banks--Clarification regarding Circular 001 Dated 11/1/1979 Representations have been received from the members of public, chambers of commerce, etc., pointing out the hardship resulting from the operation of the provisions of section 40A(3) in view of the difficulties in clearance of cheques issued on banks. Sub-section (3) of section 40A of the Income .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... draft will not be cleared expeditiously would constitute "exceptional or unavoidable circumstances" within the meaning of clause (j) of rule 6DD. Accordingly, any payment for business expenditure made during the period when the cheque clearing operations are suspended or other similar circumstance as aforesaid exists, will not be covered by the provisions of section 40A(3) of the Income-tax Act pr .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X