https://www.taxtmi.com/caselaws?id=329577 The High Court ruled in favor of the assessee, finding that the payment of Rs. 10,00,000 to M/s. Araham Developers Pvt. Ltd. was justified and reasonable for business purposes. The disallowance of Rs. 5,00,000 under Section 40A(2)(b) was deemed unwarranted as the payment was not excessive and lacked substantial evidence to invoke the provision. The Court emphasized the need for considering fair market value and commercial expediency before disallowing payments to related parties. The appeal was allowed, restoring the decision of the Commissioner of Income Tax (Appeals) and overturning the Tribunal's order. en-us Wed, 22 Jun 2016 00:00:00 +0530 Tue, 05 Jul 2016 22:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=329577 The High Court ruled in favor of the assessee, finding that the payment of Rs. 10,00,000 to M/s. Araham Developers Pvt. Ltd. was justified and reasonable for business purposes. The disallowance of Rs. 5,00,000 under Section 40A(2)(b) was deemed unwarranted as the payment was not excessive and lacked substantial evidence to invoke the provision. The Court emphasized the need for considering fair market value and commercial expediency before disallowing payments to related parties. The appeal was allowed, restoring the decision of the Commissioner of Income Tax (Appeals) and overturning the Tribunal's order. Case-Laws Income Tax Wed, 22 Jun 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=329577