https://www.taxtmi.com/caselaws?id=310811 ITAT Indore allowed the appeal in favor of the assessee on multiple grounds. The disallowance under Section 40A(3) for cash payment of Rs. 17,50,000 for land purchase was deleted as the payment was made for business expediency to settle court proceedings, with genuineness and identity of parties established. Disallowance of interest on interest-free loans to related parties was deleted since assessee's own funds were sufficient. Addition of agricultural income was deleted as AO had accepted similar claims in previous year. Disallowance of directors' remuneration was deleted as AO made ad hoc 40% disallowance without determining fair remuneration. For auditor fees provision under Section 40(a)(ia), deduction was allowed for subsequent year when TDS would be deducted. Disallowance of telephone, traveling and fuel expenses was deleted as AO made assumptions without evidence of personal use. en-us Mon, 31 Jul 2023 00:00:00 +0530 Fri, 17 Nov 2023 21:00:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310811 ITAT Indore allowed the appeal in favor of the assessee on multiple grounds. The disallowance under Section 40A(3) for cash payment of Rs. 17,50,000 for land purchase was deleted as the payment was made for business expediency to settle court proceedings, with genuineness and identity of parties established. Disallowance of interest on interest-free loans to related parties was deleted since assessee's own funds were sufficient. Addition of agricultural income was deleted as AO had accepted similar claims in previous year. Disallowance of directors' remuneration was deleted as AO made ad hoc 40% disallowance without determining fair remuneration. For auditor fees provision under Section 40(a)(ia), deduction was allowed for subsequent year when TDS would be deducted. Disallowance of telephone, traveling and fuel expenses was deleted as AO made assumptions without evidence of personal use. Case-Laws Income Tax Mon, 31 Jul 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310811