Kimaya Impex (P.) Ltd. v. ITO (2022) 193 ITD 710 (Mum.)(Trib.)

S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Salary paid to daughter of Director-Disallowance is held to be not justified.

 Assessing Officer disallowed claim for deduction of salary paid to daughter of director. On appeal the Tribunal held that the Assessing Officer  did not disclose as to how said expenditure was found by him to be either excessive or unreasonable having regard to fair market value of services which were rendered by her for legitimate needs of business of assessee company. Disallowance  was set aside. (AY. 2014-15)