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2010 (11) TMI 516 - AT - Income TaxDisallowance u/s 40A(2)(b)- The revenue contented that the salary paid to Shri Anil Gupta was excessive and unreasonable having regard to the fair market value of the services rendered by him - It is admitted before us by the ld. DR and it is also a matter of fact on record that no enquiry has been made in respect of the fair market value of the services rendered by Shri Anil Gupta to the assessee-firm - No comparable case has been brought on record - On the other hand, the ld. CIT(A) has clearly mentioned that the services were engaged to take care of the interest of the firm and the firm has been able to derive income of about Rs.24.00 lakhs in these years - These findings have not been displaced by the ld. DR in any manner - Otherwise, tax has been deducted at source from the salary paid to Shri Anil Gupta and composition of his total income is such that a part of it falls within the maximum marginal rate of tax - In absence of any evidence that the fair market value of services rendered by him to the firm was less than the actual amount paid to him, we are of the view that the ld. CIT(A) was right in deleting the disallowances made by the AO - Decided in favour of assessee.
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