School-affiliation charges remain taxable where not directly connected with examinations, while extended limitation requires proof of deliberate tax e...
Concessional penalty for search-disclosed unreconciled jewellery applies where substantive disclosure conditions are met despite omission from origina...
Addition u/s 40A(2)(b) - Allegation of excessive and unreasonable salary paid to the relative of partner - The assessing officer questioned the legitimacy of this payment due to the absence of a filed income tax return by the recipient and the perceived collusive nature of the transaction. - sham transaction designed to evade tax. - The Appellate Tribunal found that the salary payment was legitimate and incurred for business purposes. The Tribunal noted that the assessing officer failed to prove that the salary was excessive or unreasonable, a prerequisite for invoking Section 40A. Additionally, the Tribunal accepted the appellant's arguments regarding the separate nature of the salary and loan transactions.
Addition u/s 40A(2)(b) - Allegation of excessive and unreasonable salary paid to the relative of partner - The assessing officer questioned the legitimacy of this payment due to the absence of a filed income tax return by the recipient and the perceived collusive nature of the transaction. - sham transaction designed to evade tax. - The Appellate Tribunal found that the salary payment was legitimate and incurred for business purposes. The Tribunal noted that the assessing officer failed to prove that the salary was excessive or unreasonable, a prerequisite for invoking Section 40A. Additionally, the Tribunal accepted the appellant's arguments regarding the separate nature of the salary and loan transactions.
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