https://www.taxtmi.com/caselaws?id=26744 The High Court upheld the Tribunal's decision, ruling in favor of the assessee, M/s. Ayurvedic Sevashram (P) Ltd. The reassessment and disallowance under section 40A of the Income-tax Act, 1961, were deemed unjustified. The Court emphasized that section 40(c)(i) applied to payments to relatives of directors, precluding the invocation of section 40A for reassessment. Consequently, the first issue was resolved in favor of the assessee, rendering discussion of the second issue unnecessary. Each party was responsible for their own costs, as per section 260(1) of the Act. en-us Wed, 24 Jul 1985 00:00:00 +0530 Mon, 08 Feb 2010 12:29:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=26744 The High Court upheld the Tribunal's decision, ruling in favor of the assessee, M/s. Ayurvedic Sevashram (P) Ltd. The reassessment and disallowance under section 40A of the Income-tax Act, 1961, were deemed unjustified. The Court emphasized that section 40(c)(i) applied to payments to relatives of directors, precluding the invocation of section 40A for reassessment. Consequently, the first issue was resolved in favor of the assessee, rendering discussion of the second issue unnecessary. Each party was responsible for their own costs, as per section 260(1) of the Act. Case-Laws Income Tax Wed, 24 Jul 1985 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=26744