Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (4) TMI 315 - AT - Income TaxAddition u/s 40A(2)(b) - assessee made payments of commission to his two sons - disallowance of entire expenditure as excessive and unreasonable - Held that:- AO is under obligation to bring comparable cases or gather data from the open market, if any. We find the Assessing Officer failed to discharge his onus in this regard. From that point of view, addition made by the Assessing Officer is premature. Under these provisions, the 100% of the payments cannot be considered as excessive or unreasonable. Coming to the applicability of the provisions of section 40A(ia), we are of the opinion that there was no conclusive findings of the Authorities below in this regard. Therefore, in our view, the Assessing Officer did not apply his mind to make out the applicability of provisions of section 40A(ia) of the Act properly. - Decided in favour of assessee.
|