Disallowance u/s 40A(2) of Commission paid to relatives cannot be made without proper enquiry

Brief Facts: The assessee is an individual, who filed his return of income for the Assessment Year 2008-09, declaring an income of Rs. 8,60,482/-. The same was revised twice by the assessee – first, due to increasing deductions claimed, by Rs. 10,500/- and after that, declaring an income under the head ‘Capital Gains’, that gave rise to a consequent increase in total income by Rs. 8,49,886/-. The said return was processed u/s 143(1)(a) of the Income Tax Act, 1961. Subsequently, the case was selected for scrutiny. The AO notice in the course of proceedings that the assessee had claim...