TMI Blog2002 (9) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... nreasonable?" - For the assessment year 1985-86, after the assessee's appeal against the order of assessment was allowed in part by the Commissioner who reduced the extent of the disallowance by 50 per cent. having regard to the increase in the cost of diesel and oil and other costs in that year, that order of the Commissioner was affirmed by the Tribunal. As the partners of the firm are admittedl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the instance of the assessee. The questions are, "1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that the payments made to K.S. Transports attract the provisions of section 40A(2)? 2. Whether, on the facts and in the circumstances of the case, the Income tax Appellate Tribunal was right in sustaining the disallowance out o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... four partners one of whom is a director of the assessee-company, two partners are ladies who are the spouses of two directors and the fourth partner is the son of another director. The Assessing Officer held that section 40A(2)(b) was attracted to the assessment of the assessee's income as the 100 per cent. increase in the transport charges paid to the firm consisting of a director and other relat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y attracted as all these persons were covered by one or the other sub-clause of section 40A(2)(b). The first question is, therefore, answered against the assessee and in favour of the Revenue. So far as the second question is concerned, having perused the order of the Commissioner which is affirmed by the Tribunal, we find that it is based upon material and that the disallowance made on the grou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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