ITAT Nagpur Deletes FMV Rent & Related Party Salary Disallowance – Inspector Report Held Insufficient

Jasibai Dayaram Amlani Vs DCIT (ITAT Nagpur) FMV Rent Addition Related Party Salary Disallowance Deleted – Inspector Report Isolated Statement Held Insufficient – ITAT Nagpur In this case, the AO enhanced rental income alleging under-statement of rent received from assessee’s son by adopting higher fair market value and also disallowed salary paid to the son u/s 40A(2)(b). The CIT(A) confirmed both additions. ITAT observed that FMV rent was estimated based on properties at Nagpur whereas the subject property was situated at Amravati and no comparable evidence was brought on record. Consi...