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2014 (3) TMI 393 - HC - Income TaxDisallowance of huge commission paid to relatives being nephew - Interpretation of Sections 2(41) and 40A(2)(b) - genuineness of expenses - Whether the relationship of the Assessee and Sh. Anil Kumar Gupta not falling within the ambit of Section 40A(2)(b) the disallowance of expenditure by ignoring the provision of Section 2(41) of the Income Tax Act can be legally sustained – Held that:- The Tribunal had come to a definite finding that it was not on account of being a nephew of the assessee that he was paid such huge commission. It is also clear that it was well within the cognizance of the Tribunal that a nephew was not included in the term 'relative' as per Section 2(41) of the Act. This aspect is not at all concerned with regard to rejection of plea of the assessee and with making of addition in his income. It was on entirely different grounds. All the three revenue authorities on facts had come to one and the same conclusion and there is concurrent finding that payment of commission shown in books of accounts of the assessee was merely a subterfuge to reduce the tax liability of the assessee – as such no substantial question arises from the appeal – Decided against Assessee.
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