TMI Blog2008 (11) TMI 71X X X X Extracts X X X X X X X X Extracts X X X X ..... 18% to close relatives covered under S. 40A(2)(b) - Tribunal finding that the interest paid was not higher than rate of interest paid to other creditors, is finding of fact - no question of law arise – disallowance not justified - 132 of 2008 (O&M) - - - Dated:- 3-11-2008 - ADARSH KUMAR GOEL and L. N. MITTAL JJ. Rajesh Sethi for the appellant. JUDGMENT The judgment of the court was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons covered under Section 40A(2)(b) as compared to the rate of 15% paid to other creditors? 2. The Assessing Officer has disallowed the claim for deduction under Section 36(1)(iii) of the Act on account of interest paid on the capital borrowed for establishing a new unit. It was held that as per explanation 8 to Section 43 of the Act, the interest paid for preoperative expenses was not admissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2001-02. This point has been well considered by the ld. Commissioner Income-tax(Appeals) and having done so, the ld. Commissioner Income-tax(Appeals) has deleted the addition in question. For this reason, no fault can be found with the order of the Commissioner Income-tax(Appeals). In Deputy CIT v. Core Healthcare Ltd. (2001) 251 ITR 61 (Guj.), it has been held that apropos section 36(1)(iii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be paid in advance, including which, the interest rate came to over 18% per annum, i.e. 18.02%, to be exact. The contention of the ld. D.R. that interest and brokerage are to be considered separately, does not hold water. The brokerage had to be paid on the date of receipt of loan i.e. in advance. It was, therefore, inextricably linked with the rate of interest emanating from the loan. Also, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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