Assessee paid research and advisory fees to its sister concern being a partnership firm. AO observed that a director of the assessee had substantial interest and hence payment was made to a person as specified under section 40A(2)(b)(v) and such payments were unreasonable. CIT(A) allowed the deduction relying on agreement between the parties which showed there was no intention to avoid tax. Tribunal reversed the order of the CIT(A) and held that assessee did not produce documentary evidence to prove genuineness of the transaction. HC upheld the order of the tribunal and held that no substantial question of law arose in the present case and no merit was found in the assessee\u2019s case. (TC A\u00a0 No. 1389 of 2009 dt. 08-03-2019) (AY. 2003-04)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40A(2) : Expenses or payments not deductible\u2013Excessive or unreasonable\u2013Agreement between assessee and related partnership firm in which one director had substantial interest \u2013Expenditure disallowed in absence of genuineness of the transaction. [S.40A(2)(b)]<\/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":[1],"tags":[],"class_list":["post-7359","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-1UH","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7359","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=7359"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7359\/revisions"}],"predecessor-version":[{"id":7360,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7359\/revisions\/7360"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=7359"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=7359"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=7359"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}