2002 (9) TMI 60

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..... en referred to us at 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 .....

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..... s, consisted of 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 .....

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..... n 40A is clearly 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 ma .....

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