Tribunal held that the department had not brought on record any material evidence to suggest that the rent paid was excessive vis-a-vis an accommodation of the same size and facility in the same locality. Therefore the rent payment as incurred for the purposes of the assessee’s business and was allowable. ( AY. 2009 -10)
ACIT v. Chambal Fertilisers And Chemicals Limited. (2018) 61 ITR 33 (Jaipur) (Trib)
S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable – Rent paid to guest house – Payment being comparable no disallowance can be made .