https://www.taxtmi.com/caselaws?id=273411 The ITAT allowed the Assessee's appeals for assessment years 2008-09 and 2009-10, overturning the CIT(A)'s decision to disallow interest paid on borrowings under section 40A(2)(b) of the Act. The ITAT held that the 18% interest rate on unsecured loans to relatives was not excessive, citing judicial precedents and emphasizing that varying interest rates to different parties do not make related party interest unreasonable. The A.O. was directed to delete the disallowances, highlighting the significance of market rates and legal precedents in determining the reasonableness of interest payments to related parties. en-us Tue, 12 Jul 2016 00:00:00 +0530 Sun, 24 Jun 2018 21:17:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=273411 The ITAT allowed the Assessee's appeals for assessment years 2008-09 and 2009-10, overturning the CIT(A)'s decision to disallow interest paid on borrowings under section 40A(2)(b) of the Act. The ITAT held that the 18% interest rate on unsecured loans to relatives was not excessive, citing judicial precedents and emphasizing that varying interest rates to different parties do not make related party interest unreasonable. The A.O. was directed to delete the disallowances, highlighting the significance of market rates and legal precedents in determining the reasonableness of interest payments to related parties. Case-Laws Income Tax Tue, 12 Jul 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=273411