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2016 (5) TMI 1287 - AT - Income TaxDisallowance of interest payment to family members by invoking provisions of section 40A(2)(b) - loan from the family members and relatives - Held that:- The assessee as well as the relatives, to whom assessee has paid interest are being taxed higher rates, the entire exercise undertaken by the Assessing Officer is neutral exercise as far as the payment of tax is concerned and there is no question of evading of payment of tax by any of the parties. Further, Hon'ble Bombay High Court in CIT vs. Gujarat Gas Financial Services Ltd [2015 (7) TMI 743 - GUJARAT HIGH COURT] has clearly laid down that CBDT in its circular No.6-P dated 06/07/1968 debars the Assessing Officer from not allowing such payment made to relatives and sister concerns, where there is no attempt to evade the tax - Decided in favour of assessee
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