| |
| The Tax Publishers2019 TaxPub(DT) 6391 (Ahd-Trib) INCOME TAX ACT, 1961
Section 40A(2)(b)
In the absence of any expenses shown by sister concern-CCCPL incurred for research work or any assets to justify services rendered as research work, AO was justified in disallowing impugned expenses debited by assessee as research expenditure, paid to CCCPL, treating the same as paper entry and/or bogus.
|
Business disallowance under section 40A(2)(b) - Excessive or unreasonable payment - Payment of research expenses to sister concern - No expenses shown by sister concern incurred for research work or any assets to justify services rendered
Assessee claimed deduction of research expenses paid to its sister concern-CCCPL. AO invoked section 40A(2)(b) and disallowed deduction.Held: In the absence of any expenses shown by sister concern-CCCPL incurred for research work or any assets to justify services rendered as research work, AO was justified in disallowing impugned expenditure debited by the assessee as research expenditure, paid to CCCPL, treating the same as paper entry and/or bogus.
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
INCOME TAX ACT, 1961
Section 14A
 SUBSCRIBE FOR FULL CONTENT
|