https://www.taxtmi.com/caselaws?id=303963 The Tribunal overturned the disallowance of interest on unsecured loans exceeding 18% under section 40A(2)(b) of the IT Act. The appellant's appeal was allowed, with the Tribunal emphasizing the reasonableness of the 21% interest rate paid on unsecured loans in line with prevailing market rates, contrary to the Assessing Officer and Commissioner of Income Tax (Appeals) who failed to distinguish between secured and unsecured loans. The decision was influenced by the Hon'ble Gujarat High Court's ruling in Aditya Medisales Ltd., highlighting the importance of market realities and risk differentials in determining interest rates. en-us Mon, 18 Apr 2016 00:00:00 +0530 Mon, 29 Aug 2022 08:32:23 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=303963 The Tribunal overturned the disallowance of interest on unsecured loans exceeding 18% under section 40A(2)(b) of the IT Act. The appellant's appeal was allowed, with the Tribunal emphasizing the reasonableness of the 21% interest rate paid on unsecured loans in line with prevailing market rates, contrary to the Assessing Officer and Commissioner of Income Tax (Appeals) who failed to distinguish between secured and unsecured loans. The decision was influenced by the Hon'ble Gujarat High Court's ruling in Aditya Medisales Ltd., highlighting the importance of market realities and risk differentials in determining interest rates. Case-Laws Income Tax Mon, 18 Apr 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=303963