CA IPCC PGBP 65 Excessive Payment made to specified Person Disallowance

2015-07-10 4

Assessee incurs expenditure, which is paid/ payable to specified person and
AO considers that such expenditure is excessive or unreasonable having regard to :-
Fair market value of the goods, services or facilities for which the payment is made or
legitimate needs of business or profession or
Benefit there from to the assessee.

In such a case, expenditure considered excessive by AO shall not be allowed as a deduction.