https://www.taxtmi.com/caselaws?id=69178 Interest paid at 15% to relatives of partners was examined under section 40A(2)(a), and the Tribunal noted comparable borrowing transactions at the same rate; on that material, the payment was not treated as excessive. On settlement of groundnut contracts without delivery of the remaining quantity, the Tribunal applied section 43(5) and treated the loss as speculative because actual delivery was absent. Part delivery of the contract did not change the character of the balance settlement, and later business sales did not convert the settlement loss into a business loss. The discussion therefore records partial relief on interest and speculative treatment of the contract settlement loss. en-us Sat, 03 Apr 1976 00:00:00 +0530 Tue, 05 Apr 2011 16:09:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69178 Interest paid at 15% to relatives of partners was examined under section 40A(2)(a), and the Tribunal noted comparable borrowing transactions at the same rate; on that material, the payment was not treated as excessive. On settlement of groundnut contracts without delivery of the remaining quantity, the Tribunal applied section 43(5) and treated the loss as speculative because actual delivery was absent. Part delivery of the contract did not change the character of the balance settlement, and later business sales did not convert the settlement loss into a business loss. The discussion therefore records partial relief on interest and speculative treatment of the contract settlement loss. Case-Laws Income Tax Sat, 03 Apr 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69178