The assessee claimed rent paid for a farmhouse taken on leave and licence from directors and their relatives, contending that the premises were used for accommodating foreign customers and business associates. The Tribunal noted that only limited evidence regarding the stay of foreign visitors was furnished and that the property belonged to related parties covered by section 40A(2)(b). As only two foreign customers were shown to have stayed at the premises during the relevant period and personal use could not be ruled out, the Tribunal held that complete disallowance was unjustified. To balance business use and the possibility of personal benefit, the disallowance was restricted to 50 per cent of the rental expenditure.  ( AY. 2016-17 & 2017-18) (  ITA Nos. 7160 & 7161/Mum/2025, dt. 04-06-2026)