.....Examine with reasons, whether the following statements are true or false, with regard to the provisions of the Income-tax Act, 1961:(a) Payment made in respect of a business expenditure incurred on 16th February, 2018 for ` 25,000 through a cheque duly crossed as “& Co.” is hit by the provisions of section 40A(3). (b) (i) It is a condition precedent to write off in the books of account, the amount due from debtor to claim deduction for bad debt. (ii) Failure to deduct tax at source in accordance with the provisions of Chapter XVII-B, inter alia, from the amounts payable to a resident as rent or royalty, will result in disallowance while computing the business income where the resident payee has not paid the tax due on such income.
Dec. 09, 2017