Disallowance invoking section 40A(2)(b) unsustainable as hire charges paid not proved as unreasonable and excessive

Buzzworks Business Services (P) Ltd. Vs ITO (ITAT Chennai) ITAT Chennai held that for invoking provisions of section 40A(2)(b), AO has to bring on record some comparable cases of similar nature to allege that hire charges paid by the assessee is unreasonable and excessive, when compared to market rates. In absence of the same, addition is unsustainable. Facts- The assessment for impugned assessment years have been completed u/s.143(3) of the Income Tax Act, 1961, after making additions towards disallowance of computer and other equipments hire charges u/s.40A(2)(b) of the Income Tax Act, 1961,...