S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Diversion of income-Matter remanded-lockdown was in force was to excluded for purpose of time limits set out in rule 34(5) of ITAT Rules for pronouncement of orders. [ITAT R. 34(5)]

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Related parties-Fair market value of rent-Failure to conduct any enquiry-No disallowance can be made-Sister-in-law of an individual does not fall under definition of relative under section 2(41)-Rental payment on account of godowns / shop made to sisters-in-law could not be disallowed. [S. 2(41), 56(2)]

S. 40(b) : Amounts not deductible-Book profit-Remuneration-Interest income-included for computation of Book profit for computing partner’s remuneration. [S. 40(b)(v)]

S. 40(b) : Amounts not deductible-Partnership-Remuneration payable to partners. Partnership Deed not specify manner of computation. Disallowance accepted. [S. 40(b)(v)]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Long term capital gains on sale of immoveable property-Commission paid without deduction of tax at source-No disallowance can be made while computing the income under the head capital gain. [S. 45, 194H]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Commission to non-resident entities-Services rendered outside India-Not liable to deduct tax at source-Article 7 of the OECD Model Convention. [S.195]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Interest expenditure-Recipients have shown income in their respective returns-No disallowance could be made-Second proviso to section 40(a)(ia) is declaratory and curative and it has retrospective effect from 1-4-2005. [S. 194A]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Presumptive taxation scheme-Interest-No disallowance can be made for failure to deduct tax at source. [S. 44AB, 44AD, 194A]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-commission expenses in respect of commission paid to overseas agents-Services are not rendered by foreign agent in India-Not liable to deduct tax at source. [S. 9(1)(vii), 195]

S. 40(a)(ia) : Amounts not deductible-Deduction at source-Leased line charges-Not liable to deduct tax at source-Before insertion of amendment covering leased charges within definition of royalty by Finance Act, 2012 though with retrospective effect from 1-6-1976. [S. 9(1)(vi), 194J]