Disallowance of expenditure limits deductions for payments to associated persons exceeding fair market value or business needs. The provision disallows deductions for payments to an associated person when the Assessing Officer considers the expenditure excessive or unreasonable, ... Summary
Disallowance of expenditure limits deductions for payments to associated persons exceeding fair market value or business needs.
The provision disallows deductions for payments to an associated person when the Assessing Officer considers the expenditure excessive or unreasonable, whether capital or revenue, based on comparison with the fair market value of goods, services or facilities, the legitimate needs of the business, and the benefit derived or accruing to the person.
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