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2016 (1) TMI 449 - AT - Income TaxDisallowance on account of interest expenses u/s.40A(2)(b) - Held that:- In the case in hand, the assessee has paid the interest @18% to the related parties and 15% to unrelated parties. The contention of the assessee is that the interest paid at lesser rate was paid to the unrelated parties, in those cases, the unsecured loan was required to be paid on demand, but in the case of related parties there was no such condition. We are of the considered view that the interest @18% is reasonable, therefore we direct the AO to delete disallowance. - Decided in favour of assessee. Disallowance on account of business development expenses - Held that:- The ld.Sr.DR submitted that the ld.CIT(A) has followed the order passed in the AY 2006-07, therefore this ground of assessee's appeal deserves to be dismissed.
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