Learning from reported cases: Interest paid to close relatives, though similar to bank loan interest but more than paid to third parties- excess disallowed. – Lacking in preparation and presentation of the case.

Learning from reported cases: Interest paid to close relatives, though similar to bank loan interest but more than paid to third parties- excess disallowed. – Lacking in preparation and presentation of the case. https://www.taxtmi.com/article/detailed?id=7985 Tribunal sustained disallowance of interest paid in excess to close relatives because the assessee failed to justify paying a higher rate to relatives when loans from third parties were available at a lower rate. The Tribunal held that without comparison of all relevant loan terms and supporting evidence-such as timing, security, amounts, flexibility, indirect costs and past practice-the excess payment to relatives could be disallowed. en-us Wed, 02 May 2018 05:59:44 +0530 Wed, 02 May 2018 05:59:44 +0530 TaxTMI RSS Generator Learning from reported cases: Interest paid to close relatives, though similar to bank loan interest but more than paid to third parties- excess disallowed. – Lacking in preparation and presentation of the case. https://www.taxtmi.com/article/detailed?id=7985 Tribunal sustained disallowance of interest paid in excess to close relatives because the assessee failed to justify paying a higher rate to relatives when loans from third parties were available at a lower rate. The Tribunal held that without comparison of all relevant loan terms and supporting evidence-such as timing, security, amounts, flexibility, indirect costs and past practice-the excess payment to relatives could be disallowed. Articles Income Tax Wed, 02 May 2018 05:59:44 +0530 https://www.taxtmi.com/article/detailed?id=7985