TMI Blog2021 (6) TMI 341X X X X Extracts X X X X X X X X Extracts X X X X ..... erent banks/NBFC s are having different interest rates for business loan if any one require loan in emergency from local money lenders then in that case one has to pay interest rate between 48% to 60%. So in our considered opinion in this case difference of interest which was received by the assessee or paid by it is just 1.25% per annum so same cannot be termed as unreasonable. We allow appeal of the assessee. - ITA. No: 1476/Ahd/2018 (Assessment Years: 2015-16) - - - Dated:- 15-3-2021 - SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI WASEEM AHMED, ACCOUNTANT MEMBER Appellant by: Shri Tushar Hemani And Shri Parimal Singh Parmar, A.R. Respondent by: Shri S. S. Shukla, Sr. D.R. ORDER PER MAHAVIR PRASAD, J.M. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .O. during the course of assessment proceedings found that the appellant had shown unsecured loans worth ₹ 19,70,16,912/- and a total interest payments of ₹ 3,55,35,414/- The learned AO asked the appellant to furnish the proofs with regards to identity, genuineness and creditworthiness of such enders. The Appellant furnished the same and the matter was resolved. . Thereafter, learned AO asked the appellant to place working, keeping 15% as the base rate of interest and differential interest payments paid to all such lenders. In response, the appellant placed such working which has been produced at para 3.3, page no. 3 of the assessment order. The learned AO thereafter asked the appellant to justify the different rate of interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id to the different parties. 7. Now we come to merit of the case. Ld. A.O. found that assesse has paid interest to certain related parties and treated interest rate @ 15% reasonable and disallowed excess rate paid to related parties u/s. 40A(2) which worked out to ₹ 34,79,788/-. 8. Ld. A.R. contention is that assesse has paid interest @ 18% to unrelated parties as well and it has paid interest @ 16.75% to the related parties. And in view of the judgment of ACIT vs. Priya Blue Industries Pvt. Ltd. in ITA No. 756/Ahd/2015 wherein it is held that if assesse has paid interest rate @ 18% same cannot be seen as excessive or unreasonable having regard to the fact that the assesse has incurred interest costs at the similar rate on borro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... though it takes 2 to 3 days time in that case credit card holder is liable to pay interest rate @ 15% to 24% however different banks/NBFC s are having different interest rates for business loan if any one require loan in emergency from local money lenders then in that case one has to pay interest rate between 48% to 60%. So in our considered opinion in this case difference of interest which was received by the assesse or paid by it is just 1.25% per annum so same cannot be termed as unreasonable. Thus, in view of the above and respectfully following the jurisdictional High Court judgment, we allow appeal of the assesse. 11. In the result, appeal filed by the Assessee is allowed. Order pronounced in Open Court on 15-03-2021 - - Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
