https://www.taxtmi.com/caselaws?id=347814 The Tribunal partially allowed the appeal, directing the Assessing Officer to re-compute the disallowance of interest expenses under section 40A(2)(b) of the Income Tax Act. The Tribunal emphasized the importance of establishing commercial expediency and using market rates in determining interest payments. It found that the interest rate should have been 14% instead of 12.5% as determined by the AO, and highlighted the lack of assessment of market value by the AO. The appeal was partially allowed for statistical purposes, stressing the need for a thorough evaluation of commercial expediency and adherence to market rates in such cases. en-us Mon, 04 Sep 2017 00:00:00 +0530 Tue, 12 Sep 2017 08:43:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=347814 The Tribunal partially allowed the appeal, directing the Assessing Officer to re-compute the disallowance of interest expenses under section 40A(2)(b) of the Income Tax Act. The Tribunal emphasized the importance of establishing commercial expediency and using market rates in determining interest payments. It found that the interest rate should have been 14% instead of 12.5% as determined by the AO, and highlighted the lack of assessment of market value by the AO. The appeal was partially allowed for statistical purposes, stressing the need for a thorough evaluation of commercial expediency and adherence to market rates in such cases. Case-Laws Income Tax Mon, 04 Sep 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=347814