Expenses or payments not deductible in certain circumstances.

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....mputation of income under the head "Profits and gains of business or profession". (2) If the assessee incurs any expenditure for which payment has been or is to be made to any "specified person", which in the opinion of the Assessing Officer is excessive or unreasonable having regard to the-- (a) fair market value of the goods, services or facilities; or (b) legitimate needs o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... his relative. 5. Hindu undivided family. Member of the family or his relative; (ii) any person being an individual or company or firm or association of persons or Hindu undivided family having substantial interest in the business or profession of the assessee, or any director, partner, member thereof or any relatives of such individual, director, partner, member or any other com....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....n of such person; (b) a person is deemed to have "substantial interest in the business or profession" if- (i) in a case where the business or profession is carried on by a company, such person is, at any time during the tax year, the beneficial owner of shares (not being shares entitled to a fixed rate of dividend whether with or without a right to participate in profits) carryin....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....gh specified banking or online mode, such payment shall be deemed to be the income under the head "Profits and gains of business or profession" in such subsequent tax year. (6) For the purposes of sub-sections (4) and (5), the figures "Rs.10000" shall be read as "Rs.35000" in case the payment is made for plying, hiring or leasing of goods carriages. (7) The provisions of sub-sections (4) and....