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2015 (1) TMI 524 - GUJARAT HIGH COURTLabour charges paid to the female relatives of the directors disallowed u/s 40A(2)(b) - the appellant had already shown corresponding receipts as and by way of job charges for polishing the same diamonds and therefore it cannot be presumed that those diamonds got polished without incurring any labour charges at all? - Held that:- Factual scenario permits us to held that provisions of Section 40A(2)(b) will permit the assessee allowance of labour charges paid to the female relatives of the Director of the assessee- Company as the interpretation of Section 40A(2)(b) would not permit disallowance when there was no finding the effect that the labour charges paid were in excess of the fair market charges and that the authorities below disallowed the labour charges without ascertaining the fair market value of the same. As the Tribunal did not appreciate corresponding receipts were already shown, and therefore, same is also answered in favour of the assessee - Decided in favour of assessee.
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