Held that the Assessing Officer was not justified in making disallowance under section 40A(2)(a) in respect of interest paid by the assessee @ 18 per cent pa on the unsecured loans raised from related parties on the basis that the assessee could have procured loans from the bank @ 15 per cent The interest paid by the assessed@18 per cent has been accepted by the Department in the earlier year, the disallowance was deleted. (AY.2014-15)
Brothers R. Kothari v. Dy. CIT (2022) 217 TTJ 17(UO) (Raipur)(Trib)
S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Rate of 18 percent-Bank charges at 15 percent-Disallowance is not justified. [S. 40A(2)(a)]