Infrastructure-development deduction remains available to EPC contractors when substantive statutory conditions outweigh contractor labels in agreemen...
Explained Investment Sources: documented gifts and traceable salary savings supported deletion of additions for property and mutual-fund SIP investmen...
Internal comparable pricing supports arm's-length interest on compulsorily convertible debentures, preventing their recharacterisation as equity for t...
Nominee director protection shields independent financial-institution appointees from criminal liability where they lack involvement in deposit defaul...
The ITAT upheld the order of the CIT(A) deleting the addition made by the AO under section 13(1)(c) read with sections 13(2)(c), 13(2)(g), and 13(2)(h) of the Act, and invoked section 40A(2)(a) for alleged excessive payments to related parties. The appellant society, operating numerous educational institutions, had entered into service contracts with related companies. The AO disallowed payments as excessive without adducing comparable third-party service evidence or industrial benchmarks. The Tribunal held that mere related-party transactions do not ipso facto render payments excessive; the AO's adhoc disallowance was based on suspicion and lacked evidentiary basis. The payments were found commensurate with services rendered. Consequently, the appeal by the Revenue was dismissed, affirming the deletion of additions and denial of exemption under section 11, as the appellant complied with the statutory parameters regarding related-party service payments.
The ITAT upheld the order of the CIT(A) deleting the addition made by the AO under section 13(1)(c) read with sections 13(2)(c), 13(2)(g), and 13(2)(h) of the Act, and invoked section 40A(2)(a) for alleged excessive payments to related parties. The appellant society, operating numerous educational institutions, had entered into service contracts with related companies. The AO disallowed payments as excessive without adducing comparable third-party service evidence or industrial benchmarks. The Tribunal held that mere related-party transactions do not ipso facto render payments excessive; the AO's adhoc disallowance was based on suspicion and lacked evidentiary basis. The payments were found commensurate with services rendered. Consequently, the appeal by the Revenue was dismissed, affirming the deletion of additions and denial of exemption under section 11, as the appellant complied with the statutory parameters regarding related-party service payments.
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