Section 40a(2)(b)

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2015 Dear experts,
Plz guide me on this my following qurey....
Son has purchased some materials from his father, both are engaged in saparately proprietaty firm, plz let me know weather this purchase is to be disallowed in son's book of account as per section 40A(2)(B)

Thanks in advance
Atul Goyal

praveen

praveen (Expert)
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13 October 2015 No you dont have to disallow. You need to mention in form 3CD. Only if they are unreasonable you have to disallow. If you get any evidence stating they are unreasonable then disallow otherwise mention such transaction in the report.

Querist : Anonymous

Querist : Anonymous (Querist)

13 October 2015 Sir, plz explain me how to figure out weather this purchase was unreasonable or not..

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