Expense cannot be denied under section 40(A)(2)(b) on surmises & conjectures

Balani Infotech P. Ltd. Vs ACIT (ITAT Delhi)

It is for an assessee as a businessman to come to a conclusion as to what remuneration of the salary is to be paid to the employees and the reasonableness of the expenses is to be judged from the angle of a businessman rather than from angle of an Assessing Officer.

The issue in the present ground is with respect to the disallowance made u/s 40(A)(2)(b) of the Act. Section 40A(2) of the Act, puts a curb on expenditure in respect of which payment has been ma

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