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2014 (2) TMI 859 - AT - Income TaxDisallowance of loss on sale of paintings Held that:- The CIT(A) was of the view that the assessee has earned profit in respect of paintings sold to very same purchasers amounting to Rs.2.21 crores - the painting sold was constituting assessees stock-in-trade, had the assessee any intention to evade any tax, the assessee could have valued stock at cost price or market price, whichever is lower - the assessee has sold some of the paintings to the very same party at profit of Rs. 2.21 crores, which was more than the loss suffered by the assessee in respect of sale of other paintings to the very same party - Had the assessee any intention to reduce its profit or to evade any tax, he could have easily managed to show marginal profit in respect of transaction with the very same party and could have easily come out from the doubts raised by the AO by showing net profit the findings of the CIT(A) have not been controverted by the revenue by bringing any positive material on record thus, there is no reason to interfere in the order of CIT(A) in deleting the loss Decided against Revenue. Deletion made u/s 40A(2)(b) of the Act - Excess interest paid on unsecured loan Held that:- The prevailing market rate of interest even in respect of secured loan was @12% and in respect of unsecured and unguarateeed loan the rate of interest was ranging from 15-18% - the loan taken by the assessee was unsecured, the rate of interest paid by the assessee was very much reasonable - the rate of interest paid by the assessee was reasonable and no disallowance is warranted u/s 40A(2)(b) of the Act the findings of the CIT(A) have not been controverted by the revenue by bringing any positive material on record thus, there is no reason to interfere with the finding of the CIT(A) Decided against Revenue.
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