https://www.taxtmi.com/caselaws?id=449377 ITAT Bangalore ruled in favor of the assessee regarding disallowance under section 40A(2). The AO had disallowed 50% of back office charges paid to a group consultant, claiming payments exceeded fair market value. The tribunal found that the assessee had a valid agreement with the group consultant at 0.5% of total income for specified services. Since the AO failed to provide material evidence proving the payments were unreasonable and made an adhoc disallowance, and acknowledged the assessee benefited from the consultant's services, the tribunal deleted the disallowance entirely. en-us Wed, 31 Jan 2024 00:00:00 +0530 Sat, 10 Feb 2024 07:44:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449377 ITAT Bangalore ruled in favor of the assessee regarding disallowance under section 40A(2). The AO had disallowed 50% of back office charges paid to a group consultant, claiming payments exceeded fair market value. The tribunal found that the assessee had a valid agreement with the group consultant at 0.5% of total income for specified services. Since the AO failed to provide material evidence proving the payments were unreasonable and made an adhoc disallowance, and acknowledged the assessee benefited from the consultant's services, the tribunal deleted the disallowance entirely. Case-Laws Income Tax Wed, 31 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449377