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2016 (4) TMI 43 - HC - Income TaxDisallowance u/s 40A - Whether the Appellate Tribunal has erred in law and on fact in holding that payment of interest @ 15% and 16% to the persons covered u/s 40A(2)(b) is commensurate with the prevailing market rate? - Held that:- Tribunal has recorded a finding of fact to the effect that the interest paid by the assessee to the persons mentioned under section 40A(2)(b) is commensurate with the interest rate prevailing in the open market. In the light of such finding of fact, it is not possible to state that the conclusion arrived at by the Tribunal that the assessee has not extended any undue benefit to the persons covered under section 40A(2)(b) of the Act, suffers from any legal infirmity warranting interference. The said ground of appeal is, therefore, rejected. Appeal admitted on second question of law Whether the Appellate Tribunal has erred in law and on fact in deleting the amount of ₹ 2,63,12,188/- treated by the Assessing Officer as deemed dividend u/s 2(22)(e) of the Act in this case?
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