https://www.taxtmi.com/caselaws?id=278716 Interest paid by an HUF to two coparceners at 15% per annum was examined under section 40A(2)(b) of the Income-tax Act. The payment was compared with interest paid to other parties at 12% per annum, but the higher rate was found not excessive having regard to the prevailing market rate during the relevant assessment year. As the Revenue did not establish that the interest was unreasonable or excessive, section 40A(2)(b) could not be applied to make a disallowance. The addition was therefore deleted. en-us Fri, 04 Jan 2013 00:00:00 +0530 Mon, 18 Feb 2019 12:52:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=278716 Interest paid by an HUF to two coparceners at 15% per annum was examined under section 40A(2)(b) of the Income-tax Act. The payment was compared with interest paid to other parties at 12% per annum, but the higher rate was found not excessive having regard to the prevailing market rate during the relevant assessment year. As the Revenue did not establish that the interest was unreasonable or excessive, section 40A(2)(b) could not be applied to make a disallowance. The addition was therefore deleted. Case-Laws Income Tax Fri, 04 Jan 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=278716