https://www.taxtmi.com/caselaws?id=419346 The Tribunal ruled in favor of the assessee, holding that the assessing officer failed to demonstrate that the interest paid to related parties was excessive or unreasonable compared to the fair market value. As the officer did not establish a correlation between the interest rate and market standards, the disallowance under section 40A (2) (b) of the Income Tax Act was deemed unjustified. Therefore, the Tribunal directed the assessing officer to delete the addition made, allowing the appeal filed by the assessee. en-us Tue, 08 Mar 2022 00:00:00 +0530 Tue, 08 Mar 2022 18:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=419346 The Tribunal ruled in favor of the assessee, holding that the assessing officer failed to demonstrate that the interest paid to related parties was excessive or unreasonable compared to the fair market value. As the officer did not establish a correlation between the interest rate and market standards, the disallowance under section 40A (2) (b) of the Income Tax Act was deemed unjustified. Therefore, the Tribunal directed the assessing officer to delete the addition made, allowing the appeal filed by the assessee. Case-Laws Income Tax Tue, 08 Mar 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=419346