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2017 (9) TMI 1231 - HC - Income TaxDis-allowance of interest paid to a related concern invoking Section 40A (2) - assessee have availed unsecured loan from the HUF - Held that:- Section 40A(2), makes it clear that where the assessee incurs any expenditure in respect of which payment has been or is to be made to any person referred to in Clause(b) of the Section and the Assessing Officer is of opinion that such expenditure is excessive or unreasonable having regard to the facilities for which payment is made or the legitimate needs of the business or profession of the assessee, it is open to the Assessing Officer to disallow so much of the expenditure as is considered by him to be excessive and unreasonable. Having regard to the factual finding of the Assessing Officer which have been confirmed by the first appellate authority and the Tribunal, we feel that the deduction is perfectly justified in the light of Section 40A(2). We do not find any questions of law arising in this case to be considered by this Court.
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