The AO restricted the deduction of interest at 12% as against 15% claimed by the appellant. Tribunal held that the AO has not brought any material on record to demonstrate that payment made was excessive and unreasonable having regard to market rate. Accordingly the addition made by the AO is deleted. (AY. 2012-13 to 2014 -15)
Motilal Laxmichand Sanghavi v. ACIT (2019) 178 ITD 710 (Mum.) (Trib.)
S. 40A(2) : Expenses or payments not deductible–Excessive or unreasonable–Payment of interest at 15% to HUF-Payment made to related parties-AO has not established that the payment was excessive and unreasonable-Addition is held to be not valid.