Allowing the appeal of the assessee the Tribunal held that; AO is not justified in disallowing 30% of commission, without placing on record any material to prove that payments made by assessee were excessive or unreasonable considering fair market value of services.( AY.2009-10)
Nat Steel Equipment (P.) Ltd. v. DCIT (2018) 171 ITD 482/ 171 DTR 49/195 TTJ 796 (Mum) (Trib.)
S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable – Commission- Disallowance of 30% of commission- Without placing on record any material to prove that payments made by assessee were excessive or unreasonable considering fair market value of services -No disallowance can be made .