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2014 (5) TMI 393 - ITAT AHMEDABADDisallowance of interest expenses – Held that:- CIT(A) was rightly of the view that the assessee is charging more % of interest on the advances given than what he is paying on the loans taken – there was no reason as to how the AO has calculated and why the addition has been made when the facts are just opposite as has been observed by the AO - the addition made by the AO does not have any basis and is factually wrong appreciation of the facts - the assessee company has own money in form of share capital, reserve & surplus and profit earned during the year - The interest charged from the sister concern as per the prevailing market rate - they have also assessed to tax (in same tax bracket) and there is no loss of revenue - The CBDT has issued circular on this issue, wherein it has been decided by the Board that no addition should be made where the sister concerns fall in the same tax bracket – revenue has not controverted the findings of the CIT(A) – Decided against Revenue.
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