Tribunal held that, payment of interest on unsecured loans at rates between 15 % an 18% can not be held to be excessive , hence no disallowance can be made . ( AY.2010-11, 2011-12)
CIT v. Ahmedabad Strips P. Ltd. (2018) 64 ITR 683 (Ahd) (Trib)
S. 40A(2): Expenses or payments not deductible – Excessive or unreasonable -Payment of interest on unsecured loans at rates between 15 % an 18% can not be held to be excessive.