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)

Kapil Goel, Ghaziabad vs. ITO Ward 2(1)(3), Ghaziabad

The appeal of the assessee is allowed for statistical purposes

ITA 1401/DEL/2024[2016-2017]Status: DisposedITAT Delhi30 Jul 2024AY 2016-2017

Bench: Shri Kul Bharat & Shri Avdhesh Kumar Mishra

Section 147Section 148Section 250Section 40A(3)

Mariyappan Dhanalakshmi, Kumbakonam, Tamil Nadu vs. The Assistant Commissioner of Income Tax, Circle-2(1), Trichy

In the result, both appeals filed by the assessee are allowed for statistical purposes

ITA 1558/CHNY/2023[2016-17]Status: DisposedITAT Chennai25 Jun 2024AY 2016-17

Bench: Shri Aby T. Varkey & Shri S.R.Raghunathaआयकर अपील सं./Ita Nos.1557 & 1558/Chny/2023 िनधा"रण वष"/Assessment Years: 2015-16 & 2016-17 V. Mariyappan Dhanalakshmi, The Acit, 31, Chakrapani South Street, Circle-2(1), Kumbakonam-612 001. Trichy.

For Appellant: Shri G. Baskar, Advocate &For Respondent: Shri Krishnan Ramaswamy
Section 133ASection 194C(6)

Mariyappan Dhanalakshmi, Kumbakonam, Tamil Nadu vs. The Assistant Commissioner of Income Tax, Circle - 2(1), Trichy, Tamil Nadu

In the result, both appeals filed by the assessee are allowed for statistical purposes

ITA 1557/CHNY/2023[2015-16]Status: DisposedITAT Chennai25 Jun 2024AY 2015-16

Bench: Shri Aby T. Varkey & Shri S.R.Raghunathaआयकर अपील सं./Ita Nos.1557 & 1558/Chny/2023 िनधा"रण वष"/Assessment Years: 2015-16 & 2016-17 V. Mariyappan Dhanalakshmi, The Acit, 31, Chakrapani South Street, Circle-2(1), Kumbakonam-612 001. Trichy.

For Appellant: Shri G. Baskar, Advocate &For Respondent: Shri Krishnan Ramaswamy
Section 133ASection 194C(6)

ITO-12(3)(1), Mumbai, Aayakar Bhavan vs. Jas Trading Private Limited, Borivali West Mumbai

In the result the appeal of the Revenue is dismissed

ITA 313/MUM/2024[2005-06]Status: DisposedITAT Mumbai31 May 2024AY 2005-06

Bench: Shri Pavan Kumar Gadale & Shri Girish Agrawal

For Appellant: Shri Rahul Hakani, AdvocateFor Respondent: Shri Nischal B, CIT, DR
Section 143(3)Section 147Section 260ASection 271Section 271(1)(c)Section 27lSection 40Section 40A

ITO 12(3)(1) Mumbai, Mumbai vs. Jas Trading Private Limited, Borivali West Mumbai

In the result the appeal of the Revenue is dismissed

ITA 311/MUM/2024[2006-07]Status: DisposedITAT Mumbai31 May 2024AY 2006-07

Bench: Shri Pavan Kumar Gadale & Shri Girish Agrawal

For Appellant: Shri Rahul Hakani, AdvocateFor Respondent: Shri Nischal B, CIT, DR
Section 143(3)Section 147Section 260ASection 271Section 271(1)(c)Section 27lSection 40Section 40A

Income Tax Officer, Kalyan vs. J D Electric Works, Kalyan

In the result, the appeal of the Revenue is dismissed

ITA 4521/MUM/2023[2009-10]Status: DisposedITAT Mumbai06 May 2024AY 2009-10

Bench: Shri Om Prakash Kant () & Shri Narender Kumar Choudhry () Assessment Year: 2009-10

For Appellant: Mr. Shashank MehtaFor Respondent: Ms. Rajeshwari Menon, Sr. DR
Section 1Section 148

Ravi Mahexa, Daman and Diu vs. Income Tax Officer, Daman Ward, Daman

ITA 195/SRT/2022[2017-18]Status: DisposedITAT Surat31 Jul 2023AY 2017-18

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.193 To 195/Srt/2022 Assessment Years: (2015-16 To 2017-18) (Physical Hearing) Ravi Mahexa, Vs. Income Tax Officer, Ward-5, 7Th 14/55, Dilipnagar Near Dilip Nagar Vapi, Fortune Square, Floor, 8Th Floor & 9Th Floor, Ii, Ground, Daman, Daman – 396210, Daman & Diu (Ut) Chala Road, Vapi-396191 Ravi Mahexa Income Tax Officer, Daman 14/55, Dilipnagar Near Dilip Nagar Ward, Daman Jevanji Ground, Daman, Daman & Diu (Ut) - Apartment, Kavi Khabardar 396210 Road, Daman-396210 Vapi "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Apkpm1888H (Assessee) (Respondent) Assessee By Shri P. M. Jagasheth, Ca Respondent By Shri Minal Kamble, Sr. Dr Date Of Hearing 19/07/2023 Date Of Pronouncement 31/07/2023

Section 115BSection 143(3)Section 145(3)Section 40ASection 68

Ravi Mahexa, Daman and Diu vs. Income Tax Officer, Daman Ward, Daman

ITA 194/SRT/2022[2016-17]Status: DisposedITAT Surat31 Jul 2023AY 2016-17

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.193 To 195/Srt/2022 Assessment Years: (2015-16 To 2017-18) (Physical Hearing) Ravi Mahexa, Vs. Income Tax Officer, Ward-5, 7Th 14/55, Dilipnagar Near Dilip Nagar Vapi, Fortune Square, Floor, 8Th Floor & 9Th Floor, Ii, Ground, Daman, Daman – 396210, Daman & Diu (Ut) Chala Road, Vapi-396191 Ravi Mahexa Income Tax Officer, Daman 14/55, Dilipnagar Near Dilip Nagar Ward, Daman Jevanji Ground, Daman, Daman & Diu (Ut) - Apartment, Kavi Khabardar 396210 Road, Daman-396210 Vapi "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Apkpm1888H (Assessee) (Respondent) Assessee By Shri P. M. Jagasheth, Ca Respondent By Shri Minal Kamble, Sr. Dr Date Of Hearing 19/07/2023 Date Of Pronouncement 31/07/2023

Section 115BSection 143(3)Section 145(3)Section 40ASection 68

Ravi Mahexa, Daman and Diu vs. Income Tax Officer, Ward 5, Vapi

ITA 193/SRT/2022[2015-16]Status: DisposedITAT Surat31 Jul 2023AY 2015-16

Bench: Shri Pawan Singh, Jm & Dr. A. L. Saini, Am आयकर अपील सं./Ita Nos.193 To 195/Srt/2022 Assessment Years: (2015-16 To 2017-18) (Physical Hearing) Ravi Mahexa, Vs. Income Tax Officer, Ward-5, 7Th 14/55, Dilipnagar Near Dilip Nagar Vapi, Fortune Square, Floor, 8Th Floor & 9Th Floor, Ii, Ground, Daman, Daman – 396210, Daman & Diu (Ut) Chala Road, Vapi-396191 Ravi Mahexa Income Tax Officer, Daman 14/55, Dilipnagar Near Dilip Nagar Ward, Daman Jevanji Ground, Daman, Daman & Diu (Ut) - Apartment, Kavi Khabardar 396210 Road, Daman-396210 Vapi "थायीलेखासं./जीआइआरसं./Pan/Gir No.: Apkpm1888H (Assessee) (Respondent) Assessee By Shri P. M. Jagasheth, Ca Respondent By Shri Minal Kamble, Sr. Dr Date Of Hearing 19/07/2023 Date Of Pronouncement 31/07/2023

Section 115BSection 143(3)Section 145(3)Section 40ASection 68

Rajesh Kumar, New Delhi vs. ITO, Ward- 35(1), New Delhi

ITA 139/DEL/2018[2013-14]Status: DisposedITAT Delhi26 Apr 2023AY 2013-14

Bench: Sh. Shamim Yahya & Sh. Anubhav Sharmaita No. 139/Del/2018, A.Y. 2013-14

Section 143(3)Section 40A(3)

Jas Trading P.Ltd, Mumbai vs. ITO 9(2)(1), Mumbai

In the result we do not have any other option but to quash the reassessment proceedings

ITA 5850/MUM/2014[2005-06]Status: DisposedITAT Mumbai21 Oct 2022AY 2005-06

Bench: Shri Prashant Maharishi, Am & Shri Kavitha Rajgopal, Jm Ito 9(2)(1) Jas Trading P. Ltd 6D/603, Prem Nagar, S.V. Aaykar Bhavan, M.K.Rd Vs. Rd, Borivali (W) Mumbai- 400 020 (Appellant) (Respondent) Ito 9(2)(1) Jas Trading P. Ltd Aaykar Bhavan, M.K.Rd 6D/603, Prem Nagar, S.V. Vs. Rd, Borivali (W) Mumbai- 400 020 (Respondent) (Appellant) Pan No. Aaacj9837H Assessee By : Shri. Rahul Hakani. Revenue By : Shri. Achal Sharma (Cit Dr), Ms. Vranda U. Matkari Date Of Hearing: 25.07.2022. Date Of Pronouncement: 21.10.2022. O R D E R

For Appellant: Shri. Rahul HakaniFor Respondent: Shri. Achal Sharma (CIT DR)
Section 133ASection 143Section 147Section 148Section 40A

Jas Trading P.Ltd, Mumbai vs. ITO 9(2)(1), Mumbai

In the result we do not have any other option but to quash the reassessment proceedings

ITA 3603/MUM/2013[2006-07]Status: DisposedITAT Mumbai21 Oct 2022AY 2006-07

Bench: Shri Prashant Maharishi, Am & Shri Kavitha Rajgopal, Jm Ito 9(2)(1) Jas Trading P. Ltd 6D/603, Prem Nagar, S.V. Aaykar Bhavan, M.K.Rd Vs. Rd, Borivali (W) Mumbai- 400 020 (Appellant) (Respondent) Ito 9(2)(1) Jas Trading P. Ltd Aaykar Bhavan, M.K.Rd 6D/603, Prem Nagar, S.V. Vs. Rd, Borivali (W) Mumbai- 400 020 (Respondent) (Appellant) Pan No. Aaacj9837H Assessee By : Shri. Rahul Hakani. Revenue By : Shri. Achal Sharma (Cit Dr), Ms. Vranda U. Matkari Date Of Hearing: 25.07.2022. Date Of Pronouncement: 21.10.2022. O R D E R

For Appellant: Shri. Rahul HakaniFor Respondent: Shri. Achal Sharma (CIT DR)
Section 133ASection 143Section 147Section 148Section 40A

M/S. Subhmangal Constructions, Pune vs. Income-Tax Officer, Ward - 7, Pune

In the result, the appeal of the assessee is dismissed

ITA 1765/PUN/2018[2015-16]Status: DisposedITAT Pune06 May 2022AY 2015-16
For Appellant: Shri Suhas BoraFor Respondent: Shri M.G. Jasnani
Section 131Section 40A

M/S Chandni Commercials Private Limited, Kolkata vs. ITO, Ward 7(4), Kolkata

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

ITA 304/KOL/2017[2012-13]Status: DisposedITAT Kolkata29 Mar 2019AY 2012-13

Bench: Shri A.T.Varkey, Jm &Dr. A.L.Saini, Am आयकरअपीलसं./Ita No.304/Kol/2017 ("नधा"रणवष" / Assessment Year:2012-13)

For Appellant: Shri ManojKataruka, AdvocateFor Respondent: Shri A.K. Singh, CIT DR
Section 143(3)Section 40ASection 40A(3)

Mmc Healthcare Limited, Chennai vs. DCIT Corporate Ward 4(1), Chennai

In the result appeal filed by the assessee is allowed for statistical purpose as indicated herein above

ITA 2978/CHNY/2017[2013-14]Status: DisposedITAT Chennai30 Aug 2018AY 2013-14

Bench: Shri N.R.S. Ganesanand Shri A.Mohan Alankamonyआयकरअपीलसं./I.T.A.No.2978/Chny/2017 (िनधा"रणवष" / Assessment Year:2013-14) Vs The Dcit, M/S. Mmc Healthcare Limited, Corporate Ward 4(1), C/O. M/S. Ramesh & Chennai. Ramachandran, Chartered Accountants, New No.39, Old No.29/3, Viswanathapuram Main Road, Kodambakkam, Chennai – 24. Pan: Aaccm5814D (अपीलाथ"/Appellant) (""यथ"/Respondent) : Shriy. Sridhar,Ca अपीलाथ" क" ओर से/ Appellant By : Dr.M. Srinivasarao, Cit ""यथ" क" ओ रसे/Respondent By : 09.08.2018 सुनवाई क" तारीख/Date Of Hearing : 30.08.2018 घोषणा क" तारीख /Date Of Pronouncement

For Appellant: Dr.M. SrinivasaRao, CITFor Respondent: 09.08.2018
Section 143(2)Section 143(3)Section 144CSection 40A

Devisingh Manana, Mumbai vs. Assistant Commissioner of Income Tax-32(1), Mumbai

In the result, the appeal filed by the assessee is hereby ordered to be partly allowed

ITA 4938/MUM/2017[2007-08]Status: DisposedITAT Mumbai29 Aug 2018AY 2007-08

Bench: Shri R. C. Sharma, Am & Shri Amarjit Singh, Jm आयकर अपील सं/ I.T.A. No.4938/Mum/2017 (निर्धारण वर्ा / Assessment Year: 2007-08) बिधम/ Devisingh Manana G-15, Acit 32(1) Dy Moriya Estate, Oshiwara Commissioner Of Income Vs. Link Road, Andheri (W), Tax, Bandra-Kurla Complex, Mumbai-400053. Bandra (E), Mumbai- 400051. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aabpm4248D (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Revenue By: Shri Chaitanya Anjaria (Ar) Assessee By: Shri Vimal Punmiya सुनवाई की तारीख / Date Of Hearing: 03.08.2018 घोषणा की तारीख /Date Of Pronouncement: 29.08.2018 आदेश / O R D E R Per Amarjit Singh, Jm: The Assessee Has Filed The Present Appeal Against The Order Dated 10.03.2017 Passed By The Commissioner Of Income Tax (Appeals)-44 Mumbai [Hereinafter Referred To As The “Cit(A)”] Relevant To The Ay. 2007- 08. 2. The Assessee Has Raised The Following Grounds: - The Ld. Cit(A) Has Grossly Erred In Confirming The “1. Reopening Of The Assessment U/S 147 R.W.S. 148 Of The Act By The Ao Whereas The Appellant Has Disclosed All The Facts

For Appellant: Shri Vimal PunmiyaFor Respondent: Shri Chaitanya Anjaria (AR)
Section 143(3)Section 147Section 148Section 154Section 194CSection 194C(1)Section 194C(2)Section 40Section 40A

The Income Tax Officer, Ferozepur vs. M/S Rehmat Traders, Ferozepur Cantt

In the result, the Revenue’s appeal is partly allowed

ITA 454/ASR/2016[2010-11]Status: DisposedITAT Amritsar01 Jun 2018AY 2010-11

Bench: Sh. Sanjay Arora & Sh. N. K. Choudhryi.T.A. No. 454/Asr/2016 Assessment Year: 2010-11

For Appellant: Sh. Ajay Goyal, CIT-DRFor Respondent: Sh. Sudhir Sehgal, Advocate
Section 143(3)Section 263Section 40ASection 40A(3)

Deogiri Transport, Mumbai vs. Asst CIT 21(1), Mumbai

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 3267/MUM/2017[2012-13]Status: DisposedITAT Mumbai14 May 2018AY 2012-13

Bench: Shri Saktijit Dey & Shri Rajesh Kumarassessment Year: 2012-13

For Appellant: Shri Pankaj R. Toprani, A.RFor Respondent: Shri Ram Tiwari, D.R
Section 40A(3)

Asst CIT Cir 3, Kalyan vs. Shankheshwar Kreators, Kalyan

In the result, appeals of the Revenue are dismissed

ITA 5351/MUM/2015[2011-12]Status: DisposedITAT Mumbai05 Mar 2018AY 2011-12

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Subodh RatnaparkhiFor Respondent: Shri V. Justin
Section 133(6)Section 143(3)Section 40aSection 69C

Asst CIT Cir 3, Kalyan vs. Shankheshwar Real Estate Co, Kalyan

In the result, appeals of the Revenue are dismissed

ITA 5350/MUM/2015[2011-12]Status: DisposedITAT Mumbai05 Mar 2018AY 2011-12

Bench: Shri G.S. Pannu, Hon'Ble & Shri C.N. Prasad, Hon'Ble

For Appellant: Shri Subodh RatnaparkhiFor Respondent: Shri V. Justin
Section 133(6)Section 143(3)Section 40aSection 69C