{"id":20849,"date":"2021-08-05T18:04:57","date_gmt":"2021-08-05T12:34:57","guid":{"rendered":"https:\/\/itatonline.org\/digest\/rajesh-bajaj-v-dcit-2021-187-itd-230-211-ttj-750-all-trib\/"},"modified":"2022-03-19T10:03:13","modified_gmt":"2022-03-19T04:33:13","slug":"rajesh-bajaj-v-dcit-2021-187-itd-230-211-ttj-750-all-trib","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/rajesh-bajaj-v-dcit-2021-187-itd-230-211-ttj-750-all-trib\/","title":{"rendered":"Rajesh Bajaj v. DCIT (2021) 187 ITD 230 \/ 211 TTJ 750\/ 201 DTR 310 (All.)(Trib.)"},"content":{"rendered":"<p>Assessee-individual was engaged in paper business. Assessing Officer held\u00a0 that assessee had paid to related parties excessive rent for various godowns\/shop. Assessing Officer compared rent paid by assessee in previous year to rent paid and\u00a0 applied the provision of section 40A(2)(b) of the Act.\u00a0\u00a0 Tribunal held that when Assessing Officer had not conducted any enquiry to ascertain fair market rent of particular property so as to hold such rental payment excessive or unreasonable, disallowance made by Assessing Officer was contrary to provision of section 40A(2)\u00a0 of the Act. Provisions of section 40A(2) could not be invoked in respect of transaction of payment of rent to sisters-in-laws who were not falling in definition in term of &#8216;relative&#8217; provided under section 2(41)\u00a0 of the Act.\u00a0 Definition of term &#8216;relative&#8217; as provided under section 56(2) is only for said clause of section 56(2) and therefore, same cannot be applied in respect of provisions of section 40A(2); in matter of section 56(2), a general definition of term &#8216;relative&#8217; as provided under section 2(41) would be applicable.<strong>\u00a0 <\/strong>\u00a0\u00a0(AY. 2013-14, 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"<p>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)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-20849","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-5qh","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20849","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=20849"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20849\/revisions"}],"predecessor-version":[{"id":25660,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/20849\/revisions\/25660"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=20849"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=20849"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=20849"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}