https://www.taxtmi.com/caselaws?id=37248 The High Court upheld the disallowance of service charges under section 40A(2) of the Income Tax Act, 1961 for both assessment years in a case involving payments made by the assessee to a related entity. The Court found the payments to be excessive compared to the market value of services rendered, highlighting concerns of indirect payments to relatives due to close relationships between the parties. The Court concluded that the disallowance was justified based on substantial evidence, dismissing the assessee's appeal and affirming the Tribunal's decision. en-us Tue, 13 Feb 1979 00:00:00 +0530 Sat, 27 Mar 2010 16:05:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37248 The High Court upheld the disallowance of service charges under section 40A(2) of the Income Tax Act, 1961 for both assessment years in a case involving payments made by the assessee to a related entity. The Court found the payments to be excessive compared to the market value of services rendered, highlighting concerns of indirect payments to relatives due to close relationships between the parties. The Court concluded that the disallowance was justified based on substantial evidence, dismissing the assessee's appeal and affirming the Tribunal's decision. Case-Laws Income Tax Tue, 13 Feb 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37248