https://www.taxtmi.com/caselaws?id=750654 ITAT Ahmedabad allowed the appeal regarding addition under Section 40A(2)(b) for alleged excessive salary to partner's relative. The appellant paid salary to an MBA-qualified administrative head and provided interest-free loan when she didn't withdraw salary. ITAT held these were separate transactions not clubable under Section 40A(2)(b). Authorities failed to prove salary was excessive or unreasonable considering fair market value of services rendered. The tribunal emphasized viewing matters from prudent businessman's perspective rather than revenue's viewpoint. Since no evidence showed services were inadequate or compensation unreasonable, the disallowance was quashed and decided in assessee's favor. en-us Thu, 21 Mar 2024 00:00:00 +0530 Tue, 26 Mar 2024 22:14:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=750654 ITAT Ahmedabad allowed the appeal regarding addition under Section 40A(2)(b) for alleged excessive salary to partner's relative. The appellant paid salary to an MBA-qualified administrative head and provided interest-free loan when she didn't withdraw salary. ITAT held these were separate transactions not clubable under Section 40A(2)(b). Authorities failed to prove salary was excessive or unreasonable considering fair market value of services rendered. The tribunal emphasized viewing matters from prudent businessman's perspective rather than revenue's viewpoint. Since no evidence showed services were inadequate or compensation unreasonable, the disallowance was quashed and decided in assessee's favor. Case-Laws Income Tax Thu, 21 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=750654