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2013 (11) TMI 961 - AT - Income TaxDisallowance u/s 40A(2)(b) – Interest paid to sister concerns - Held that:- Outside parties had also supplied goods and services to assessee to whom no interest had been paid for delayed payments - Payments of interest to sister concerns is apparently excessive compared to market value - CIT(A) has however allowed relief on the ground that interest payment made have been inbuilt into the price charged by the sister concerns - Prices charged by the sister concerns were not favourable to the assessee compared to other parties - The order of CIT(A) giving relief cannot be upheld - This aspect requires fresh consideration at the level of AO as the same had not been examined either by AO or by CIT(A) – The issue was restored for fresh consideration. Addition u/s 68 – Loan taken - Held that:- Necessary details and evidence in support of the transactions had been filed before CIT(A) which had also been sent to the AO for verification and report - The assessee has filed confirmation from the party along with PAN No. of the party which have been placed on record - The assessee has also filed copy of ledger account in the books of the assessee as well as copy of the assessee's account in the books of the other party - Copy of the bank account in which these transactions were recorded had also been filed along with reconciliation statement - The loan taken by the assessee was as per hire purchase agreement, copy of which had also been filed - The assessee had discharged the burden of explaining the transactions satisfactorily with support of documentary evidences – Decided against Revenue.
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