https://www.taxtmi.com/caselaws?id=786619 Business expenditure paid under contracts to independent, unrelated service providers for stock verification, MIS reporting and marketing cannot be disallowed solely as excessive or unreasonable when its business nexus is established. Section 40A(2)(b) does not apply to unrelated parties, and domestic transfer-pricing principles govern reasonableness review of related-party payments. Where the accounts have not been rejected under section 145(3), differing scope, location and assignment complexity also prevent mechanical comparison with payments to other providers. The stated disallowances were set aside and the appeal succeeded for the assessee. en-us Thu, 12 Feb 2026 00:00:00 +0530 Mon, 16 Feb 2026 09:13:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=786619 Business expenditure paid under contracts to independent, unrelated service providers for stock verification, MIS reporting and marketing cannot be disallowed solely as excessive or unreasonable when its business nexus is established. Section 40A(2)(b) does not apply to unrelated parties, and domestic transfer-pricing principles govern reasonableness review of related-party payments. Where the accounts have not been rejected under section 145(3), differing scope, location and assignment complexity also prevent mechanical comparison with payments to other providers. The stated disallowances were set aside and the appeal succeeded for the assessee. Case-Laws Income Tax Thu, 12 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=786619