Section 40A(3A) of the Income Tax Act

Income-tax Act, 2025: s.36

Section 40A(3A) falls under section 40A of the Income-tax Act, 1961, which corresponds to section 36 (Expenses or payments not deductible in certain circumstances) of the Income-tax Act, 2025.

Read section 36 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 40A(3A) is ASK Wealth Advisors (P) Ltd. v. ACIT (42 Taxmann.com 277), cited in 13 of the 48 judgments on BharatTax that turn on this section.

Leading authorities on Section 40A(3A)

ASK Wealth Advisors (P) Ltd. v. ACIT
42 Taxmann.com 277 · 2014 · ITAT
13
citing judgments

No tax is deductible at source when payments are made merely towards reimbursement of expenses incurred on the assessee's behalf by another entity.

Mohammed Ali v. ITO
65 Taxmann.com 189 · 2016 · High Court
11
citing judgments

Disallowance under section 40A(3) for cash payments exceeding the prescribed limit can lead to increased taxable income and tax liability, satisfying the conditions for revision under section 263(1).

Judgments on Section 40A(3A)

Mageba Bridge Products Private Limited, Kolkata vs. ACIT, Circle 11(1), Kolkata

In the result, the appeal filed by the assessee is partly allowed

ITA 1771/KOL/2026[2017-18]Status: DisposedITAT Kolkata30 Sept 2026AY 2017-18

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 115PSection 143(3)Section 234ASection 250Section 40A

Pakshal Impex Pvt. Ltd., Mumbai City vs. ITO, Ward-5(2)(4), Mumbai, Mumbai City

In the result, the Assessee‟s appeal i

ITA 3430/MUM/2026[2011-12]Status: DisposedITAT Mumbai23 Jul 2026AY 2011-12

Bench: Hon’Ble Narender Kumar Choudhry & Hon’Ble Arun Khodpia

Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 250

Pakshal Impex Pvt. Ltd., Mumbai City vs. ITO, Ward-5(2)(4), Mumbai, Mumbai City

In the result, the Assessee‟s appeal i

ITA 3429/MUM/2026[2010-11]Status: DisposedITAT Mumbai23 Jul 2026AY 2010-11

Bench: Hon’Ble Narender Kumar Choudhry & Hon’Ble Arun Khodpia

Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 250

Pakshal Impex Pvt. Ltd., Mumbai City vs. ITO, Ward-5(2)(4)< Mumbai, Mumbai City

In the result, the Assessee‟s appeal i

ITA 3428/MUM/2026[2009-10]Status: DisposedITAT Mumbai23 Jul 2026AY 2009-10

Bench: Hon’Ble Narender Kumar Choudhry & Hon’Ble Arun Khodpia

Section 143(1)Section 143(2)Section 143(3)Section 147Section 148Section 250

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2584/CHNY/2025[2016-17]Status: DisposedITAT Chennai04 May 2026AY 2016-17

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2583/CHNY/2025[2015-16]Status: DisposedITAT Chennai04 May 2026AY 2015-16

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2582/CHNY/2025[2014-15]Status: DisposedITAT Chennai04 May 2026AY 2014-15

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2581/CHNY/2025[2013-14]Status: DisposedITAT Chennai04 May 2026AY 2013-14

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Annai Builders Real Estates Private Limited, Chennai vs. ACIT, Central Cricle 3(2), Chennai

In the result, the appeals filed by the assessee in ITA Nos

ITA 2580/CHNY/2025[2012-13]Status: DisposedITAT Chennai04 May 2026AY 2012-13

Bench: Shri Aby T Varkey & Shri S. R. Raghunathaआयकरअपीलसं./Ita Nos.2580-2584/Chny/2025 निर्धारणवर्ा / Assessment Years:2012-13 To 2016-17 Annai Builders Real Estates The Assistant Commissioner Of Private Limited, Vs. Income-Tax, Cir.3(2) No.16, Medavakkam Main Road Chennai. Madippakkam, Chennai-600091 [Pan: Aadca6643H] (प्रत्यर्थी/Respondent) (अपीलार्थी/Appellant)

For Appellant: Shri. N.Arjun Raj, AdvocateFor Respondent: Shri. Shiva Srinivas, CIT
Section 132Section 139Section 142Section 143(2)Section 153ASection 250

Airstate Logistics & Couriers Private Limited, Bengaluru vs. Income Tax Officer, Bengaluru

In the result, appeal filed by the assessee is partly allowed for statistical purposes

ITA 586/BANG/2025[2014-15]Status: DisposedITAT Bangalore27 Feb 2026AY 2014-15

Bench: Shri Prashant Maharishi & Shri Keshav Dubeyassessment Year : 2014-15

For Appellant: Sri Thirumala Naidu K., A.R. &For Respondent: Sri Shivanad Kalakeri, D.R
Section 143(3)Section 147Section 148Section 250oSection 40ASection 40A(3)

Rajan Budhisagar Singh, Na vs. Arivs.ITO, Ward-4, Navsari

In the result, the appeal of the assessee is partly allowed

ITA 13/SRT/2025[2018-19]Status: DisposedITAT Surat03 Nov 2025AY 2018-19

Bench: Shri Dinesh Mohan Sinha & Shri Bijayananda Prusethआयकर अपील सं./Ita No.13/Srt/2025 Assessment Year: (2018-19) (Hybrid Hearing) Rajan Budhisagar Singh The Income Tax Officer, बनाम/ 506, Priti Complex, Ward – 4, Navsari Vs. Shital Park Society, Opp. Jalkamal Society, Navsari – 396445, Gujarat "थायीलेखासं./जीआइआरसं./Pan/Gir No: Ahkps9432M (अपीलाथ"/Appellant) (""थ"/Respondent) िनधा"रतीकीओरसे/Appellant By Shri Sujesh C. Suratwala, Ca राज"कीओरसे /Respondent By Shri Ajay Uke (Sr. Dr)With Shri Kevin Langaliya, C.A. सुनवाई की तारीख/Date Of Hearing 06/08/2025 उद्घोषणा की तारीख/Date Of Pronouncement 03/11/2025

Section 142(1)Section 143(3)Section 250Section 40ASection 40A(3)

Kanaiya Food Products, Jamkandorana vs. The Principal Commissioner of Income Tax-1, Rajkot

In the result, appeal filed by the assessee, is allowed

ITA 336/RJT/2024[2017-18]Status: DisposedITAT Rajkot28 Oct 2025AY 2017-18

Bench: Dr. Arjun Lal Saini & Shri Dinesh Mohan Sinhaआयकर अपील सं./Ita Nos. 336/Rjt/2024 (Assessment Year: 2017-18) (Hybrid Hearing) Kanaiya Food Products, Vs. The Principal Commissioner Of A A, Dhoraji Jamkandorana Income Tax-1, Rajkot 2Nd Floor, Aaykar Bhawan, Race Road, Near Gujarat Pani Purvatha Tank, Course Ring Road, Rajkot Jamkandodrana-360405 Rajkot-361006 "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Aamfk9437F (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri Vimal Desai, Ld. ARFor Respondent: Shri Sanjay Punglia, Ld. CIT-DR
Section 147Section 263Section 40ASection 40A(3)

ITO, Patiala vs. Sh. Kamalpreet Singh, Patiala

Appeal stands dismissed

ITA 225/CHANDI/2015[2009-10]Status: DisposedITAT Chandigarh04 Sept 2025AY 2009-10

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.224/Chandi/2015 (िनधा"रणवष" / Assessment Year: 2009-10) Acit-Circle Patiala Shri Balwinder Singh Patiala. Prop. M/S M.P. Traders बनाम/ Vs. (Represented By L/R Shri Simranpal Singh) # 986/3 Dhobi Ghat, Patiala. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Acrps-5840-M (अपीलाथ"/Appellant) : (""थ" / Respondent) & 2. Co. No.13/Chandi/2015 [In Ita No.224/Chandi/2015] (िनधा"रणवष" / Assessment Year: 2009-10) Shri Balwinder Singh Acit-Ward-1 बनाम/ Prop. M/S M.P. Traders Patiala. (Represented By L/R Shri Simranpal Singh) Vs. # 986/3 Dhobi Ghat, Patiala. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Acrps-5840-M (अपीलाथ"/Appellant) : (""थ" / Respondent) & 3. आयकरअपीलसं./ Ita No.225/Chandi/2015 (िनधा"रणवष" / Assessment Year: 2009-10) Acit-Circle Patiala Shri Kamalpreet Singh बनाम/ Vs. Patiala. Prop. M/S Saran Enterprises 4, Dlf Shopping Complex, Patiala. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Acbps-1831-N (अपीलाथ"/Appellant) : (""थ" / Respondent)

For Appellant: Shri Tejmohan Singh (Advocate) – Ld. ARFor Respondent: Smt. Kusum Bansal (CIT) – Ld. DR
Section 120(1)Section 133ASection 143(2)Section 143(3)

ITO, Patiala vs. Sh. Balwinder Singh, Patiala

Appeal stands dismissed

ITA 224/CHANDI/2015[2009-10]Status: DisposedITAT Chandigarh04 Sept 2025AY 2009-10

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.224/Chandi/2015 (िनधा"रणवष" / Assessment Year: 2009-10) Acit-Circle Patiala Shri Balwinder Singh Patiala. Prop. M/S M.P. Traders बनाम/ Vs. (Represented By L/R Shri Simranpal Singh) # 986/3 Dhobi Ghat, Patiala. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Acrps-5840-M (अपीलाथ"/Appellant) : (""थ" / Respondent) & 2. Co. No.13/Chandi/2015 [In Ita No.224/Chandi/2015] (िनधा"रणवष" / Assessment Year: 2009-10) Shri Balwinder Singh Acit-Ward-1 बनाम/ Prop. M/S M.P. Traders Patiala. (Represented By L/R Shri Simranpal Singh) Vs. # 986/3 Dhobi Ghat, Patiala. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Acrps-5840-M (अपीलाथ"/Appellant) : (""थ" / Respondent) & 3. आयकरअपीलसं./ Ita No.225/Chandi/2015 (िनधा"रणवष" / Assessment Year: 2009-10) Acit-Circle Patiala Shri Kamalpreet Singh बनाम/ Vs. Patiala. Prop. M/S Saran Enterprises 4, Dlf Shopping Complex, Patiala. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Acbps-1831-N (अपीलाथ"/Appellant) : (""थ" / Respondent)

For Appellant: Shri Tejmohan Singh (Advocate) – Ld. ARFor Respondent: Smt. Kusum Bansal (CIT) – Ld. DR
Section 120(1)Section 133ASection 143(2)Section 143(3)

Sh. Kamalpreet Singh, Patiala vs. ACIT, Patiala

Appeal stands dismissed

ITA 185/CHANDI/2015[2009-10]Status: DisposedITAT Chandigarh04 Sept 2025AY 2009-10

Bench: Hon’Ble Shri Laliet Kumar, Jm & Hon’Ble Shri Manoj Kumar Aggarwal, Am 1. आयकरअपीलसं./ Ita No.224/Chandi/2015 (िनधा"रणवष" / Assessment Year: 2009-10) Acit-Circle Patiala Shri Balwinder Singh Patiala. Prop. M/S M.P. Traders बनाम/ Vs. (Represented By L/R Shri Simranpal Singh) # 986/3 Dhobi Ghat, Patiala. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Acrps-5840-M (अपीलाथ"/Appellant) : (""थ" / Respondent) & 2. Co. No.13/Chandi/2015 [In Ita No.224/Chandi/2015] (िनधा"रणवष" / Assessment Year: 2009-10) Shri Balwinder Singh Acit-Ward-1 बनाम/ Prop. M/S M.P. Traders Patiala. (Represented By L/R Shri Simranpal Singh) Vs. # 986/3 Dhobi Ghat, Patiala. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Acrps-5840-M (अपीलाथ"/Appellant) : (""थ" / Respondent) & 3. आयकरअपीलसं./ Ita No.225/Chandi/2015 (िनधा"रणवष" / Assessment Year: 2009-10) Acit-Circle Patiala Shri Kamalpreet Singh बनाम/ Vs. Patiala. Prop. M/S Saran Enterprises 4, Dlf Shopping Complex, Patiala. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Acbps-1831-N (अपीलाथ"/Appellant) : (""थ" / Respondent)

For Appellant: Shri Tejmohan Singh (Advocate) – Ld. ARFor Respondent: Smt. Kusum Bansal (CIT) – Ld. DR
Section 120(1)Section 133ASection 143(2)Section 143(3)

Dev Bhumi Dold Chain Pvt. Ltd, Delhi vs. DCIT Circle-7(1), New Delhi

In the result, the appeal of assessee is partly allowed as above

ITA 3163/DEL/2019[2014-15]Status: DisposedITAT Delhi09 May 2025AY 2014-15

Bench: Shri Vikas Awasthy & Shri Avdhesh Kumar Mishra

Section 115JSection 143(3)Section 37Section 37(1)Section 40Section 40ASection 40A(3)

Prakash Chand Varindani, Jaipur vs. ACIT Certal Cirlce-3, Jaipur

In the result, the appeal of the assessee is allowed

ITA 1146/JPR/2024[2017-18]Status: DisposedITAT Jaipur09 Apr 2025AY 2017-18

Bench: Him. 2

For Appellant: Sh. Abhishek Soni, CAFor Respondent: Mrs. Swapnil Parihar, JCIT-DR
Section 144Section 40A(3)Section 68

Assistant Comissioner Central Circle 1(3), Nagpur vs. M/S Shrigopal Rameshkumar Sales Pvt. Ltd, Nagpur

In the result, appeal filed by the Revenue is dismissed

ITA 135/NAG/2018[2015-2016]Status: DisposedITAT Nagpur21 Jan 2025AY 2015-2016

Bench: Shri V. Durga Rao & Shri K.M. Roy, Accountant, Member

For Appellant: Shri Kapil HiraniFor Respondent: Shri Sandipkumar Salunke
Section 132Section 132(1)Section 139Section 69C

Bhagwanram Chimnaramji Prajapat, Hyderabad vs. Income Tax Officer, Ward-11(3), Hyderabad

In the result, appeal filed by the assessee is allowed

ITA 494/HYD/2019[2014-15]Status: DisposedITAT Hyderabad20 Nov 2024AY 2014-15

Bench: Shri Manjunatha, G. (Accountant Member), Shri K. Narasimha Chary (Judicial Member)

For Appellant: Shri P.Murali Mohan Rao, ARFor Respondent: : Shri K.Meghnath Chowhan
Section 143(3)Section 263

Sivakarthikeyan Transports, Karur vs. Income Tax Officer, Ward - 2 Karur, Karur

In the result the appeal of the assessee is allowed

ITA 970/CHNY/2023[2014-15]Status: DisposedITAT Chennai04 Sept 2024AY 2014-15

Bench: Shri Aby T. Varkey & Shri S.R. Raghunathaआयकर अपील सं./Ita No.970/Chny/2023 िनधा"रण वष" /Assessment Year: 2014-15 Sivakarthikeyan Transports, The Income Tax Officer, 23, Pasuapthypuram, Vs. Ward-2, Karur – 639001. Karur. Tamil Nadu. [Pan: Aaias 3396N] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" की ओर से/ Assessee By : Shri S. Sridhar, Advocate ""थ" की ओर से /Revenue By : Shri D. Hema Bhupal, Jcit सुनवाई की तारीख/Date Of Hearing : 19.06.2024 घोषणा की तारीख /Date Of Pronouncement : 04.09.2024 आदेश / O R D E R Per S.R. Raghunatha, A.M : This Appeal By The Assessee Is Arising Out Of The Order Of The Commissioner Of Income Tax (Appeals), [Nfac], Delhi [Hereinafter “Cit(A)] In Din & Order No.Itba/Nfac/S/250/2023- 24/1054458891(1), Dated 19.07.2023. 2. The Grounds Of Appeal Raised By The Assessee Are As Under: (A) The Order Passed By The Learned Cit(A) Is Against The Probabilities & Evidence Of Facts Put Forth Before It & Also Contrary To Settled Principles With Regard To The Law On Taxation. :- 2 -:

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri D. Hema Bhupal, JCIT
Section 40Section 40ASection 40A(3)