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2024 (2) TMI 528 - ITAT BANGALOREDisallowance u/s. 40A(2) - addition being 50% of the total back office charges paid to group consultant - as per AO payment made by the assessee is in excess of fair market value HELD THAT:- As the assessee has entered into agreement with to group consultant to the agreement states the services offered and the schedule of fees @ 0.5% of total income. AO has not brought any material on record to show that the payment made to group consultant is unreasonable and excessive and has made disallowance on adhoc basis, merely stating that the order of the ITAT in group case has not been accepted by the revenue. AO has observed that the assessee may have benefitted from the bulk or centralized purchasing done though to group consultant but it does not justify the entire payment. Once it is accepted by the AO that the assessee is benefited through to group consultant , no adhoc disallowance is called for - we delete the disallowance u/s. 40A(2) of the Act. Decided in favour of assessee.
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