Disallowance u/s 40A(2) invalid if AO gives no proof of excessiveness

Nat Steel Equipment Private Limited Vs DCIT (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai has ruled in favor of Nat Steel Equipment Private Limited, dismissing appeals filed by the revenue department for the Assessment Years 2009-10 and 2010-11. The Tribunal’s decision addressed two key issues: the disallowance of commission paid to Mr. Darayus A. Bathena under Section 36(1)(ii) of the Income Tax Act, and the disallowance of remuneration and commission paid to Mr. Zoru Bathena under Section 40A(2)(a) of the Act. Commission to Mr. Darayus A. Bathena (Section 36(1)(ii)) The first p...