https://www.taxtmi.com/caselaws?id=792821 Section 40A(2)(a) could not be applied to treat the share acquisition from an associate concern as excessive expenditure where the shares were shown as non-current investments in the balance sheet and were not routed through the profit and loss account. The assessee's business objects did not change the character of the transaction. The Assessing Officer also assumed face value to be fair market value without any valuation exercise or comparable material. On these facts, the disallowance had no proper foundation, so the addition was set aside and the matter was restored for fresh adjudication. en-us Thu, 14 May 2026 00:00:00 +0530 Thu, 04 Jun 2026 08:37:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=792821 Section 40A(2)(a) could not be applied to treat the share acquisition from an associate concern as excessive expenditure where the shares were shown as non-current investments in the balance sheet and were not routed through the profit and loss account. The assessee's business objects did not change the character of the transaction. The Assessing Officer also assumed face value to be fair market value without any valuation exercise or comparable material. On these facts, the disallowance had no proper foundation, so the addition was set aside and the matter was restored for fresh adjudication. Case-Laws Income Tax Thu, 14 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=792821