https://www.taxtmi.com/manuals?id=1138 Disallowance of deduction is attracted where an assessee makes payment to a specified person and the Assessing Officer considers the expenditure to be excessive or unreasonable having regard to the fair market value of the goods, services or facilities, the legitimate business needs of the assessee, or the benefit derived or accruing from the payment. Only the excessive or unreasonable portion is disallowed; the entire expenditure is not to be rejected merely because the payer and payee are related or connected. The rule applies to expenditure only and does not cover a sale by the assessee to a specified person at a price below fair market value. en-us Tue, 15 Sep 2015 11:15:00 +0530 Fri, 01 May 2026 14:23:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/manuals?id=1138 Disallowance of deduction is attracted where an assessee makes payment to a specified person and the Assessing Officer considers the expenditure to be excessive or unreasonable having regard to the fair market value of the goods, services or facilities, the legitimate business needs of the assessee, or the benefit derived or accruing from the payment. Only the excessive or unreasonable portion is disallowed; the entire expenditure is not to be rejected merely because the payer and payee are related or connected. The rule applies to expenditure only and does not cover a sale by the assessee to a specified person at a price below fair market value. Manuals Income Tax Tue, 15 Sep 2015 11:15:00 +0530 https://www.taxtmi.com/manuals?id=1138