Disallowance u/s 40A(2)(b) can not be made without enquiry in respect of the fair market value of the services

DCIT Vs M.G.S. Hospitalities (ITAT Delhi)- Section 40A(2)(b) – When assessee firm pays hefty salary to the father of a partner, it attracts provisions of Sec 40A(2)(b)  but dis allowance can be made  without verifying the market value of services provided by the partner’s father.

ITAT, Delhi

DCIT Versus M.G.S. Hospitalities

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