https://www.taxtmi.com/caselaws?id=340160 The Tribunal set aside the disallowance of excess salary payments to employees who were relatives of partners under section 40A(2)(a), directing a re-computation based on Fair Market Value (FMV) of services provided. The disallowance of salary payments to relatives of partners under section 40A(2)(b) was sustained at Rs. 6,00,000 by the CIT(A), but the Tribunal emphasized reassessment based on FMV. The cash payment disallowance under section 40A(3) to a sister concern was overturned as it was not claimed as an expenditure, leading to partial allowance of the assessee's appeal. en-us Fri, 03 Mar 2017 00:00:00 +0530 Thu, 16 Mar 2017 10:26:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=340160 The Tribunal set aside the disallowance of excess salary payments to employees who were relatives of partners under section 40A(2)(a), directing a re-computation based on Fair Market Value (FMV) of services provided. The disallowance of salary payments to relatives of partners under section 40A(2)(b) was sustained at Rs. 6,00,000 by the CIT(A), but the Tribunal emphasized reassessment based on FMV. The cash payment disallowance under section 40A(3) to a sister concern was overturned as it was not claimed as an expenditure, leading to partial allowance of the assessee's appeal. Case-Laws Income Tax Fri, 03 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=340160