https://www.taxtmi.com/forum/issue?id=1632 AO applied Section 40A(2) to disallow part of interest paid to relatives as excessive relative to bank rates; the core question is whether higher interest to related parties was commercially justified when unsecured loans were taken to address a credit restriction, and the matter is primarily a factual inquiry requiring evidence to show the genuineness and reasonableness of the payments. en-us Wed, 02 Dec 2009 19:18:13 +0530 Thu, 23 Jan 2025 15:58:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/forum/issue?id=1632 AO applied Section 40A(2) to disallow part of interest paid to relatives as excessive relative to bank rates; the core question is whether higher interest to related parties was commercially justified when unsecured loans were taken to address a credit restriction, and the matter is primarily a factual inquiry requiring evidence to show the genuineness and reasonableness of the payments. Discussion-Forum Income Tax Wed, 02 Dec 2009 19:18:13 +0530 https://www.taxtmi.com/forum/issue?id=1632