I would like to have clarification from u regarding 40A(2) of income tax.
If the assessee has incurred some exp related to business with unrelated party and the Assessing Officer is of opinion that it is not reasonable. Can he disallow that amount even if paid to Unrelated party? If so, on what grounds he can do that?
Query on section 40 disallowance
Replies (1)
No. Only transactions with specified persons are looked by AO.
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