Disallowance of payment made to relatives of the Directors u/s ...

Court Deletes Additions: AO Ignored Relatives' Experience and Qualifications u/s 40A(2)(b); Tax Implications Clarified.

December 3, 2018

Case Laws Income Tax AT

Disallowance of payment made to relatives of the Directors u/s 40A(2)(b) - AO should have considered experience, qualification and technical competency, which has not been done in the instant case - Director is taxable at maximum marginal rate - Additions deleted.

View Source

← Previous Next →

Disallowance of payment made to relatives of the Directors u/s ...

Court Deletes Additions: AO Ignored Relatives' Experience and Qualifications u/s 40A(2)(b); Tax Implications Clarified.

December 3, 2018

Case Laws Income Tax AT

You may also like:

Disallowance u/s 40A(2) - Educational qualifications and work experience of the directors were ignored as irrelevant because of the low salary/remuneration benevolently...

Estimation of Profit/Section 40A(2)(b) - JV entered - sub-contracting - AO had formed a view that the assessee JV had suppressed its profit by making excessive payment...

Addition u/s 56 - allotment of shares cannot be equated with receipt of shares - receipt of share there should be shares in existence and a person holding such share...

Key legal issues and the Tribunal's holdings: Agricultural land sold by assessee situated beyond municipal limits cannot be treated as capital asset u/s 2(14). Addition...

In the case, ITAT decided on two main issues: 1. Addition on account of Gold and Silver Jewellery u/s 69A: Assessee disclosed Rs. 70,00,000 as unexplained investment...

Addition u/s 40A(2) - Allegation of Excessive price paid to related parties - The provisions of section 40A(2) of the Act applies for making disallowance of expenses for...

Addition u/s 40A(2) - disallowance of interest claim of 9% - ITAT has rightly concluded that the provisions like Section 40A are meant to check evasion of tax through...

Disallowance u/s. 40A(2) - addition being 50% of the total back office charges paid to group consultant - The Tribunal held that, AO has observed that the assessee may...

Addition u/s 40A (2) (b) - exponential increase in the Directors’ remuneration - CBDT Circular clearly states that no disallowance is to be made u/s 40A (2) in respect...

Excess rent paid to the related party - Disallowance invoking the provision of section 40A(2)(b) - Since this definition provided u/s 56(2) is only for the said clause...

Addition u/s 40A(2)(b) - payment to the persons specified - the AO estimated the profit of the assessee and determined the income, nowhere he doubted the expenses...

Additions u/s 56 - The gifts received from the close relatives u/s 56(2)(v) are outside the scope of 56(2). - The surrender of the rights of the close relatives in...

Revision u/s 263 - The records of the instant case speaks that no details were filed by the assessee before the Ld. A.O to prove the reasonableness of payments made to...

The CIT(A) partly allowed and restricted the addition on account of commission expenses at 0.25% as compared to 2% adopted by the Assessing Officer. The coordinate bench...

Revision u/s 263 by CIT - addition u/s 40A ignored by AO - expenses have been incurred in cash exceeding Rs. 20,000/- per day - AO is expected to examine the provisions...

Quick Updates: