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2018 (5) TMI 1684 - AT - Income TaxDisallowance made u/s 40A(2)(b) - unbalanced payment to doctors i.e. 84% of salaries being paid to four doctors, and 16% salaries being paid to the remaining seven doctors - whether the four doctors are specified persons - Held that:- No finding by the Assessing Officer about as to what constitutes fair market price of the services rendered by the promoter directors and that he has simply proceeded to make an adhoc disallowance @ 15% out of the payments made to these persons. Remuneration of doctors must depend on their market worth, and determination of such market worth is uninfluenced by what other professionals in their area of expertise earn - in view of the case CIT v. Ashok J. Patel (2013 (12) TMI 1480 - GUJARAT HIGH COURT)] adhoc disallowances u/s 40A(2) are not permissible - simply because a payment is ‘high’, it need not be ‘excessive’ too, but then the Assessing Officer has used the expressions ‘high’ and ‘excessive’ rather interchangeably. - Decided in favor of assessee.
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