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 

AI Summary

Purchasing from grandfather's brother's grandson and his company are 'relative' transactions under Section 40A(2)(b) Income Tax Act. A query was raised regarding whether purchasing goods from the grandson of one's grandfather's brother falls under the definition of a 'relative' for the purposes of Section 40A(2)(b) of the Income Tax Act. The question also inquired if transactions with a company in which this individual has a substantial interest would be covered under the same provision. The response provided by a chartered accountant confirmed that such transactions would indeed be covered under the provision regarding payments to relatives.