Sr. No. Particulars Amount (in Rs.

)
Disallowance Allowance
1 1. Rent of Rs. 3,50,000 is payable for the office 105,000 245,000
building. TDS is neither deducted nor deposited till
the return filing date.

2 1. M/s. A Traders, purchased goods on credit on 51,000 45,000

June 10, 2023 for Rs. 96,000 and paid as: - Rs.
9,000 in cash on June 12, 2023, Rs. 11,000 in cash
on June 16, 2023, Rs. 40,000 by a bearer cheque on
June 25, 2023 and Rs. 36,000 by an account payee
cheque on June 30, 2023.

3 3. Mr. B, an employee earns salary of Rs. 5,40,000 45,000 495,000

p.a. M/s. X & Y makes payment to all its employees
by account payee cheques. However, salary for
March 2024 amounting for Rs. 45,000 was paid in
cash to Mr. B on March 31, 2024.

4 4. Professional Tax of Rs. 2,500 was payable 2,500 -

during P.Y. 2023-24. Nothing is paid till the return
filing date.
5 5. Rs. 25,000 paid for salary to Mr. A on April 5, 25,000 -
2023 by cash.
6 6. Salary of Rs. 8,50,000 paid (by an account 255,000 595,000
payee cheque) to Mr. C, a resident employee. TDS
is neither deducted nor deposited.
7 7. Commission to an agent (not an employee) of 27,000 63,000
Rs. 90,000 incurred during the year. TDS is
deducted on the same but not deposited till the
return filing date.
8 8. Staff welfare expense incurred Rs. 68,000 for 40,000 28,000
P.Y. 2023-24 were payable to Mr. D. The payment
was done as follows: -Rs. 10,000 bearer cheque and
Rs. 10,000 cash on March 10, 2024; Rs. 20,000 cash
on March 15, 2024 and remaining amount paid by
account payee cheque dated March 16, 2024.

9 9. Rs. 60,000 paid in cash to Mr. E for purchase of 60,000 -

raw-material on May 10, 2023.
10 10. Out of the total purchases made, purchase worth - 167,000
Rs. 1,67,000 were made from Mr. Z (brother of Mr.
X’s father). The fair market value of the goods
purchased was Rs. 1,50,000.
11 11. Commission expenses are payable to Mr. J, 50,000 750,000
(brother of Mr. X). He is an agent for M/s. X & Y
but he is not its employee. The industry rate of
commission to agents is 3 % of sales. Commission
payable to Mr. J is Rs. 8,00,000.
 Reason for Disallowance

Note 2: -TDS is neither

deducted nor deposited or
deducted but not deposited till
the return filing date
Note 1: Expense exceeding Rs
10000 paid via cash / bearer
cheque on a single day to a
single person

Note 1

Expense allowed only on

payment basis and unpaid till
return filing date
Note 1

Note 2

Note 2

Note 1

Note 1
 Excess exp. Incurred with a
relative
Sr. No. Amount (in Rs.) Reason for Disallowance
Disallowance Allowance
1 52,000 572,000 Note 1: Exps. Exceeding Rs.
10,000 in cash / bearer cheque
paid in a single day to single
person
2 20,000 - Note 1
3 30,000 182,000 Note 2: Exps. Allowed only if
paid till return filing date
4 20,000 350,000 Note 2: Exps. Allowed only if
paid till return filing date
5 670,000 650,000 Note 3: De. As per Income tax
act is permissible as an expense

6 135,000 540,000 Note 4: Maximum Interest

permissble as per income tax
provisions is 12%
7 500,000 1,100,000 Note 5: Salary / Remuneration
to partners is permmissible as
per income tax provisions

8 400 2,000 Note 2

9 50,000 - Donation is not allowed as a
business expense
10 685,500 - Income tax not permitted as an
expense