TMI Blog2016 (7) TMI 1657X X X X Extracts X X X X X X X X Extracts X X X X ..... r section 40A(2)(b) AO has to give a finding having regard to the fair market rate. In the present case, no such finding is given. The assessee has placed reliance on the two decisions of the Coordinate Bench of the Tribunal rendered in the case of Ram Avtar Garg [ 2010 (5) TMI 715 - ITAT JAIPUR] pertaining to A.Y. 2005-06 and in assessee s own case in pertaining to A.Y. 2010-11 wherein the Coordinate Benches have allowed the interest @ 24% being fair market rate. The facts of the present case are identical. The revenue has not brought any contrary material on record suggesting that the rate so claimed by the assessee is excessive of the fair market rate as prevalent during the year under appeal. Therefore, we hereby direct the AO to de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emains to be adjudicated is Ground No. 1, confirming the disallowance of Rs. 6,92,942/- on account of interest on unsecured loans paid in excess of 18% to the persons specified u/s 40A(2)(b) of the IT Act. 6. Briefly stated the facts related to this ground are that the AO while framing the assessment, made disallowance out of interest paid to the persons specified u/s 40A(2)(b) of the IT Act, 1961 (hereinafter referred to as the Act) holding that the same is excessive and made addition of Rs. 6,92,942/-. The assessee aggrieved by this order of the AO, preferred appeal before ld. CIT (A), who after considering the submissions, confirmed the addition. 7. Now the assessee is in appeal before the Tribunal. 7.1. The ld. Counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of persons or Hindu undivided family having a substantial interest in the business or profession of the assessee or any director, partner or member of such company, firm, association or family, or any relative of such director, partner or member; (v) a company, firm, association of persons or Hindu undivided family of which a director, partner or member, as the case may be, has a substantial interest in the business or profession of the assessee; or any director, partner or member of such company, firm, association or family or any relative of such director, partner or member; (vi) any person who carries on a business or profession,- (A) where the assessee being an individual, or any relative of such assessee, has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per section 40A(2)(b), the AO has to give a finding having regard to the fair market rate. In the present case, no such finding is given. The assessee has placed reliance on the two decisions of the Coordinate Bench of the Tribunal rendered in the case of Ram Avtar Garg vs. ITO in ITA No. 58/JP/2010 pertaining to A.Y. 2005-06 and in assessee s own case in ITA No. 570/JP/2015 pertaining to A.Y. 2010-11 wherein the Coordinate Benches have allowed the interest @ 24% being fair market rate. The facts of the present case are identical. The revenue has not brought any contrary material on record suggesting that the rate so claimed by the assessee is excessive of the fair market rate as prevalent during the year under appeal. Therefore, we hereby ..... X X X X Extracts X X X X X X X X Extracts X X X X
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