Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2016 (11) TMI 1024 - RAJASTHAN HIGH COURT

2016 (11) TMI 1024 - RAJASTHAN HIGH COURT - TMI - Interest paid to third party - diallowance of claim as business expenditure while estimating the net profit - Held that:- As no interest or very low rate of interest has been charged from family concerns on advances, the assessee has raised loans and paid interest and forwarded the same for non-business consideration therefore the interest from the said amount cannot be allowed as business expenditure u/s 37 of the Act being for non-business cons .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

department and also assessee's appeal. 2. This Court while admitting the matter framed the following question which reads as under:- "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in not allowing interest paid to third party as business expenditure while estimating the net profit ?" 3. Heard Mr. P.K. Kasliwal counsel for the appellant and Mrs. Parinitoo Jain counsel for the respondents. 4. In view of the fact that the tr .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r, PB 65-71. the main grievance of the Revenue is that either no interest or very low rate of interest has been charged from family concerns on advances of ₹ 32,91,561/-. the assessee has raised loans and paid interest and forwarded the same for non-business consideration out of ₹ 32,91,561/- advanced to family concerns, interest on amount of ₹ 4,71,293/- and 10,64,394/- is being charged by the assessee but no interest on the remaining amount of ₹ 17,55,874/- is being cha .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

8377; 17,55,874/- on product basis being the interest not for the purpose of business. Thus, the assessee gets the relief from the order of the AO accordingly. Hence, this ground of the Revenue is partly allowed and that of the assessee is dismissed. 16. Ground No.5 of the assessee and Ground No.1(3) of the Revenue. The main grievance of the assessee in its ground is that the ld. CIT(A) erred in confirming the addition by the AO on account of income from Trailer amounting to ₹ 40,000/- and .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version