Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (8) TMI 1435 - AT - Income TaxAddition u/s 40A(2)(b) - assessee to have debited interest in P & L account @ 24% as paid to 3 parties as against that paid in other cases @ 18% - benchmarking assessee’s interest rate paid in other cases @ 18% to disallow 6% excessive rate in case of three payees - HELD THAT:- There is not even iota of discussion in the lower orders about market rate of interest. Nor any exercise in this direction seems to have been carried out. As in CIT vs. Sarjan Realities Ltd [2014 (8) TMI 206 - GUJARAT HIGH COURT] holds that the impugned disallowance cannot be invoked solely because an assessee has made interest payments at different rates to various parties. We repeat that there is no other material discussed apart from adopting interest rate @ 18% as paid to other payees. We accordingly follow hon’ble jurisdictional high court decision to delete the impugned interest disallowance/addition. - Decided in favour of assessee.
|