https://www.taxtmi.com/caselaws?id=337550 The Tribunal allowed the assessee's appeal, deleting the disallowance of interest payment exceeding 12% per annum under section 40A(2)(b) of the Income Tax Act. The Tribunal emphasized the business rationale behind the interest rate, the absence of tax avoidance motives, and the justifiability of 18% interest. It criticized the Assessing Officer's disallowance as lacking legal basis and highlighted the principle of revenue neutrality to avoid double taxation. Ultimately, the Tribunal found the disallowance unwarranted and ruled in favor of the assessee, allowing the appeal and deleting the disallowance amount. en-us Mon, 09 Jan 2017 00:00:00 +0530 Wed, 11 Jan 2017 07:26:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337550 The Tribunal allowed the assessee's appeal, deleting the disallowance of interest payment exceeding 12% per annum under section 40A(2)(b) of the Income Tax Act. The Tribunal emphasized the business rationale behind the interest rate, the absence of tax avoidance motives, and the justifiability of 18% interest. It criticized the Assessing Officer's disallowance as lacking legal basis and highlighted the principle of revenue neutrality to avoid double taxation. Ultimately, the Tribunal found the disallowance unwarranted and ruled in favor of the assessee, allowing the appeal and deleting the disallowance amount. Case-Laws Income Tax Mon, 09 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337550