TMI Blog2016 (3) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... In the case of market loans, no security is given and no paper or other formalities are required to be completed. The unsecured loan is also available at the call and convenience of the assessee as and when required. Keeping in view the peculiar facts and circumstances of the present case, we are of the view that the disallowance sustained by the ld. CIT(Appeals) is unwarranted and hence, we delete the same. - Decided in favour of assessee - ITA No. 897/CHD/2015 - - - Dated:- 19-2-2016 - H. L. Karwa, VP And And Rano Jain, AM For the Appellant : Shri Hari Om Arora For the Respondent : Shri Manjit Singh ORDER Per: H L Karwa: This appeal filed by the assessee is directed against the order of ld. CIT(Appeals) - I, Lu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 (in short 'the Act'). In response to the said notice, the assessee contended that the interest rates on the loans from the bank were available in the range of 12% to 13% after giving col lateral security to the bank. But, in the case of market loans, no security is required and no paper or other formality is to be completed. Accordingly, it was stated that the rate of 18% per annum paid to unsecured loans was reasonable. The Assessing Officer did not accept the above contentions of the assessee and disallowed a sum of ₹ 6,76,279/- and added the same to the income of the assessee. 4. On appeal, the ld. CIT(Appeals) restricted the rate of interest to 15% as against 18% claimed by the assessee and 12% allowed by the Assessi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9;s business being followed consistently and also appreciating the progress in taxable income than last year, I am of the considered opinion that there seems to harm in curtailing the rate of interest @ 12% than actually paid and claimed by the appellant @ 18% p.a., far far below the prevalent market rate of intt. @ 24% p.a. Further, I agree with the appellant's contention the Revenue ought not to sit on the chair of the businessman appellant who better knows its business expediencies/necessities. In the totality of facts and circumstances of the case, discussed supra, I am of the considered opinion that without pin-pointing the denial and any variation by the recipient of interest, the addition of ₹ 2,56,743/-[as against allegedl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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