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TMI Blog2013 (12) TMI 1416X X X X Extracts X X X X X X X X Extracts X X X X ..... the Respondent : A.N. Mahajan,Ashok Kumar,Bharatji Agarwal,Csc,D. Awasthi,G.Krishna,R.K. Upadhaya,S Chopra ORDER We have heard Shri Suyash Agrawal, learned counsel for the assessee-appellant. Shri R.K. Upadhyay appears for the Income Tax Department. These appeals were admitted on the question of law:- "Whether the Tribunal was legally justified in confirming the rate of interest at 22% only in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as family members are concerned, the assessee had shown interest at 24% on the borrowed capital and whereas the interest on loans from third party was paid at 18%. He paid interest to banks at 20.50%. The Commissioner (Appeals) dismissed the appeal. The Income Tax Appellate Tribunal dismissed the second appeal confirming the findings that the rate of interest to family members at 21% was rightly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital for non-commercial purposes it was held that no part of interest could be disallowed under Section 36 (1) (iii). The Court relied upon CIT v. Radico Khaitan Ltd., (2005) 274 ITR 354 (All), and S.A. Builders Ltd. v. CIT (Appeals), (2007) 288 ITR 1 (SC). In CIT v. Rockman Cycle Industries Private Ltd., (Supra) the assessee had borrowed from sister concern and paid interest thereon at 18% per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Each case will depend upon its own facts. In the present case the Tribunal has confirming the finding of CIT (A) and AO, held that whereas the appellant borrowed from the outsiders at 18%, the capital borrowed from family members and sister concern was at 24%. Even bank rate was not more than 21%. The A.O. tried to enter into the true nature of transaction in which he found it unreasonable for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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