https://www.taxtmi.com/caselaws?id=278990 The ITAT Ahmedabad allowed the Assessee's appeal against the disallowance of interest rate difference under section 40A(2)(b) for AY 2006-07. The Assessee successfully demonstrated that the interest recipients paid tax at the maximum rate, indicating no tax evasion. Transactions between related parties were found to be reasonable, leading to the deletion of the addition made by the AO. The ITAT decision aligned with a Bombay High Court ruling, emphasizing the absence of tax evasion and the absence of unreasonable or excessive payments, resulting in a favorable outcome for the Assessee. en-us Thu, 05 Dec 2013 00:00:00 +0530 Wed, 27 Feb 2019 15:43:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=278990 The ITAT Ahmedabad allowed the Assessee's appeal against the disallowance of interest rate difference under section 40A(2)(b) for AY 2006-07. The Assessee successfully demonstrated that the interest recipients paid tax at the maximum rate, indicating no tax evasion. Transactions between related parties were found to be reasonable, leading to the deletion of the addition made by the AO. The ITAT decision aligned with a Bombay High Court ruling, emphasizing the absence of tax evasion and the absence of unreasonable or excessive payments, resulting in a favorable outcome for the Assessee. Case-Laws Income Tax Thu, 05 Dec 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=278990