The ITAT bench in Delhi held that the AO was not justified in disallowing

The ITAT bench in Delhi held that the AO was not justified in disallowing 

The ITAT bench in Delhi held that the AO was not justified in disallowing the expenditure by invoking the provisions of Section 40(A)(2)(b) of the Act because he simply compared the assessee's salary payment in the year under consideration with that of the earlier year to come to the conclusion of excessive salary payment. The expediency, legitimacy and the business needs of the expenditure will have to be examined from the businessman’s point of view and not from the department's view as held by Hon'ble Gujarat High Court in the case of Voltamp Transformers (P.) Ltd. v. CIT  129 ITR 105 and Hon'ble Rajasthan High Court in the case of CIT v. Consulting Engineering Group Ltd 365 ITR 284.



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