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2014 (1) TMI 1490 - HC - Income TaxDisallowance u/s 36(1)(iii) - Held that:- The rate of interest which was paid to the Bank was between 15% to 18% while interest on the loans which were advanced out of borrowed funds was charged at the rate of 18% - The CIT (A) held that the business expediency for furnishing the loan was duly established with reference to Shree Krishna Ship Breaking Industries - No disallowance was required to be made. In regard to M/s Neuromed Imaging Centre (P) Ltd., it was found that an amount of Rs.1 crore was paid by way of loan at a rate of 12% immediately after a loan of Rs.77.50 lacs was taken at a much higher rate - There was no business expediency and the amount which was obtained at a higher rate of interest was passed on to the sister concern at a lower rate of interest without utilizing it for its own business - The Tribunal has not considered this part of the order of the Tribunal - The issue has been restored for fresh adjudication.
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