https://www.taxtmi.com/caselaws?id=337603 The Tribunal ruled in favor of the assessee, allowing all six appeals and directing the Assessing Officer to delete the disallowance of interest paid in excess of 12% per annum. The Tribunal emphasized that the interest rate from individuals should not be compared to bank rates due to the informal nature of such transactions. The decision highlighted the lack of legal basis for the disallowance under Section 40A(2)(b) of the Income-tax Act, ultimately finding the Assessing Officer's actions legally unsustainable. en-us Mon, 26 Dec 2016 00:00:00 +0530 Thu, 12 Jan 2017 08:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=337603 The Tribunal ruled in favor of the assessee, allowing all six appeals and directing the Assessing Officer to delete the disallowance of interest paid in excess of 12% per annum. The Tribunal emphasized that the interest rate from individuals should not be compared to bank rates due to the informal nature of such transactions. The decision highlighted the lack of legal basis for the disallowance under Section 40A(2)(b) of the Income-tax Act, ultimately finding the Assessing Officer's actions legally unsustainable. Case-Laws Income Tax Mon, 26 Dec 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=337603