Section 40A(2)b

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  1. Thenu

    Thenu New Member

    An individual purchases goods from a partnership firm in which his family members are partners. Amount paid for the same is in excess of market price. Whether this attracts disallowance under this section?
  2. Parul_Gupta

    Parul_Gupta Active Member

    Yes, as the relatives of the buyer have substancial interest in the partnership firm, it will attract disallowance under Section 40A(2)
  3. Thenu

    Thenu New Member

    Thank you.
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