During the year, assessee sold a building and received a sum of Rs. 5.82 crores and offered long-term capital gains. While declaring long-term capital gains, assessee claimed transfer expenses of Rs. 59 lakhs as a deduction. Out of this, a sum of Rs. 35 lakhs was accepted by the Assessing Officer\u00a0 Assessing Officer disputed transfer expenses, which admittedly included commission payments of Rs. 18 lakhs made to wife and daughter of the assessee’s director, being related parties covered within the ambit of section 40A(2)(b). On appeal, the CIT(A) allowed the payment on the ground that the amount paid was within the ambit of expenses on transfer.\u00a0 On appeal, the Tribunal held that the assessee has proved the nature of services rendered by the daughter and wife of the director of the assessee for enabling the transfer of subject mentioned property. Order of CIT A) affirmed. (AY. 2017-18)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40A(2): Expenses or payments not deductible-Excessive or unreasonable-Long term capital gains-Commission payment to wife-Allowable as deduction. [S. 45, 48] <\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61127","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fTV","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61127","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=61127"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61127\/revisions"}],"predecessor-version":[{"id":61128,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61127\/revisions\/61128"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61127"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61127"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61127"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}