Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (8) TMI 841 - AT - Income TaxDisallowance u/s 40A(2)(a) - excessive payments made by the assessee to its sister concerns for purchase of gold ornaments - valuation of gold/silver jewellery for making payments to sister concerns. - adoption of the rate of 'Bombay Bullion Association’ - There is difference in rates of gold and silver in Jalgaon and Bombay - CIT(A) deleted the additions. Held that:- Assessing Officer in the remand report has accepted that after applying local rates, the assessee has not made any excessive payments to the sister concerns for the purchase of ornaments. The local rates as published in the local Newspapers have been compared with the rates applied by the assessee and on verification it is found to be in order. Thus, the Assessing Officer accepted that no excessive payments were made by the assessee to its sister concerns. Under such circumstances disallowance u/s. 40A(2)(a) is uncalled for. Decided against the Revenue.
|