Disallowance of expenditure u/s 40A(2) - In the absence of any ...

Taxpayer's Expenditure Disallowance u/s 40A(2) Reduced to 10% Due to Lack of Comparable Instances.

August 19, 2021

Case Laws Income Tax AT

Disallowance of expenditure u/s 40A(2) - In the absence of any comparable instance of rendering the similar services/supply of goods, it would not be permissible to disallow the expenditure u/s 40A(2). As the needful was not done by the Lower Authorities and on adhoc/estimate basis, the CIT Appeal has restricted the disallowance upto 20% - we restrict the disallowance upto 10% of the expenditure claimed by the Assessee - AT

View Source

← Previous Next →

Disallowance of expenditure u/s 40A(2) - In the absence of any ...

Taxpayer's Expenditure Disallowance u/s 40A(2) Reduced to 10% Due to Lack of Comparable Instances.

August 19, 2021

Case Laws Income Tax AT

You may also like:

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...

Failure to file Form 10/10B before due date prescribed u/s 139(1) cannot be fatal to deny exemption u/s 11(2), especially when Form 10/10B was available on record when...

Disallowance u/s 40A(2)(b) - AO was not justified in adopting disallowance to the extent of 10% payment under Section 40A(2)(b) of the Act solely on the ground that the...

Income tax slabs - Upto 2 lacs = nil, from 2 lacs to 5 lacs = 10%, from 5 lacs to 10 lacs = 20%, above 10 lacs = 30%

Disallowance being 10% of expenditure - Disallowance of expenditure @ 10% of the expenditure in the instant case appears to be on the higher side since it gives a profit...

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...

Disallowance of directors remuneration u/s 40A(2)(a) - A.O by misconstruing the scope and gamut of Sec. 40A(2)(a) had disallowed the entire amount of the directors...

Denial of exemption u/s 11(2) was contested due to the trust's failure to file Form No. 10 within the due date specified u/s 139(1) owing to technical issues. The...

Charitable entity u/s 2(15) denied exemption u/ss 11 and 12 by Assessing Officer (AO) on grounds of conducting exhibitions being commercial in nature. ITAT held no...

ITAT held taxpayer eligible for new tax regime under s115BAC despite initially filing return under old regime. Filing Form 10-IE is directory rather than mandatory,...

Customs broker's license revocation order set aside due to lack of evidence for alleged violations. Key findings: no proof of misdeclaration or undervaluation to...

Disallowance u/s 40A(3) - cash payments of expenditures - poor creditability in the market - genuineness of such expenditure is not in dispute - AO directed to sustain...

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) - unreasonable professional fees to spouse - AO has not examined any details and has not given any valid reason and no comparable was brought on...

Disallowance to 10% of the sub brokerage expenses - the Tribunal not accepting 20% disallowance and limiting the disallowance to 10% in these facts cannot be said to be...

Quick Updates: