Excessiveness under section 40A(2) must be found; lack of minute employee details alone cannot justify disallowance.

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....Disallowance of salary recharges and expense reimbursements was challenged where revenue relied on absence of detailed employee-wise service records and plain-paper cost-sharing agreements; AO made no finding that payments were excessive or provided no comparison with fair market value or benefit derived. The article explains that section 40A(2) requires formation of an opinion that expenditure is excessive or unreasonable before disallowance, and that under section 37(1) the assessee bears onus to prove business purpose. Absent a finding of excessiveness, mere lack of minute service details does not justify denying the claimed expenditure; the disallowance was held unsustainable and the appeal allowed.....