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Income Tax - Highlights / Catch Notes

Home Highlights February 2020 Year 2020 This

Disallowance of interest - assessee had taken unsecured loans ...

Income Tax

February 8, 2020

Disallowance of interest - assessee had taken unsecured loans from the family members of the partners in the earlier years and paying interest @ 15% on the same - Fresh borrowing during the year from HDFC bank has been utilized for advancing to the partners and the family members and there is thus a direct nexus - it would have been appropriate to compare the related party transaction with an independent third party transaction carrying the same qualitative unsecured loan parameters.

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