https://www.taxtmi.com/caselaws?id=332694 The Tribunal held that the disallowance of a portion of the Director's salary under Section 40A(2) of the Income Tax Act was unjustified as the Assessing Officer failed to establish fair market value or conduct a proper inquiry into the reasonableness of the salary increase. Therefore, the disallowance was deleted. However, the addition made on account of discrepancies in account balances between two parties was upheld due to the appellant's failure to provide supporting evidence despite explanations provided. The appeal was partly allowed, with the disallowance on this ground sustained. en-us Thu, 11 Aug 2016 00:00:00 +0530 Fri, 23 Sep 2016 12:22:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=332694 The Tribunal held that the disallowance of a portion of the Director's salary under Section 40A(2) of the Income Tax Act was unjustified as the Assessing Officer failed to establish fair market value or conduct a proper inquiry into the reasonableness of the salary increase. Therefore, the disallowance was deleted. However, the addition made on account of discrepancies in account balances between two parties was upheld due to the appellant's failure to provide supporting evidence despite explanations provided. The appeal was partly allowed, with the disallowance on this ground sustained. Case-Laws Income Tax Thu, 11 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=332694