[aaykarbhavan] No sec. 40A(2) disallowance if payment to director was authorized by CLB and taxed at maximum rate in his hands

No sec. 40A(2) disallowance if payment to director was authorized by CLB and taxed at maximum rate in his hands

July 14, 2014[2014] 45 taxmann.com 478 (Gujarat)

IT: No addition could be made on basis of gross profit rate where Assessing Officer had not brought any material on record to dispute correctness of books of account and further no evidence had been brought on record to substantiate allegation of unrecorded sales

IT: Where payment made to directors was authorised by CLB and recipient of payment was taxed at maximum rate, no addition could be made under section 40A(2)

IT: Where no material was brought by Assessing Officer to prove that cash balance on which interest was claimed by assessee did not exist or same was used for non-business purpose, interest should be allowed

 

Regards

Prarthana Jalan

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Posted by: Prarthana Jalan <prarthanajalan@ymail.com>

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