https://www.taxtmi.com/caselaws?id=255325 Section 40A(2)(b) permits disallowance only where the Assessing Officer, on a fair market value basis, finds that payments to specified persons are excessive or unreasonable; ad hoc estimation or unsupported assumptions are insufficient, so the labour-charge disallowance was not sustainable. Where corresponding job-charge receipts were already recorded, the entire labour expenditure could not be rejected on the footing that no labour cost was incurred, because the record did not justify treating the whole payment as inadmissible. The disallowance was therefore set aside, and relief followed on both issues. en-us Mon, 15 Dec 2014 00:00:00 +0530 Wed, 14 Jan 2015 10:23:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=255325 Section 40A(2)(b) permits disallowance only where the Assessing Officer, on a fair market value basis, finds that payments to specified persons are excessive or unreasonable; ad hoc estimation or unsupported assumptions are insufficient, so the labour-charge disallowance was not sustainable. Where corresponding job-charge receipts were already recorded, the entire labour expenditure could not be rejected on the footing that no labour cost was incurred, because the record did not justify treating the whole payment as inadmissible. The disallowance was therefore set aside, and relief followed on both issues. Case-Laws Income Tax Mon, 15 Dec 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=255325