Relative for the purpose of section 40A(2)(b)

[PRAJAPATI JAGADISH]

ipurchase goods from grandson of my grand father`s brother  than in that case  the grand son of assessee`s grand father`s brother is relative for the purpose of Section40A(2)(b) and the grandson of my grand father`s brother have substantial interest in a company and i made purchase from that company whether i covered under above provision of ralative payment 

[CAGOPALJI AGRAWAL]

Yes, it would be covered.

AI Summary

Related party definition: a distant familial descendant can be treated as relative, so company purchases are covered by the rule. A purchaser who is the grandson of the assessee's grandfather's brother qualifies as a relative for the related-party payment provision; if that grandson has substantial interest in a company and the assessee purchases from that company, the payments are covered by the related-party rule.