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2012 (10) TMI 532 - ITAT CHENNAIDisallowance of interest expense u/s 36(1)(iii) - Assessee had paid 18% interest to its related parties on the loans received from relatives - Assessee had received interest only at the rate of 10% -11% from two parties – Interest free loan has been given to two parties – Held that:- As if there was no material to indicate that moneys were advanced out of borrowed funds, the presumption would always be that moneys were advanced out of own funds. As it is to pick out few of the loans given by the assessee and make a comparison of the interest rate, will not be appropriate. There is nothing on record to show that the amounts given by the assessee as loan were coming out of interest bearing funds. - Decided in favor of assessee.
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