https://www.taxtmi.com/caselaws?id=445909 ITAT Ahmedabad allowed the assessee's appeal regarding disallowance of interest paid to directors under section 40A(2)(b) and commission expenses. The tribunal found that neither AO nor CIT(A) provided cogent basis for determining 18% interest rate as excessive or establishing fair market rate. Revenue authorities failed to demonstrate how their applied rates were reasonable. Regarding commission disallowance, the tribunal noted the assessee, being a pharmaceutical export unit, filed adequate documentation including sales details, agent confirmations, and shipping bills. Revenue accepted identical commission payments in preceding and succeeding years during scrutiny assessments, establishing genuineness of the expenditure. en-us Fri, 10 Nov 2023 00:00:00 +0530 Wed, 22 Nov 2023 07:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=445909 ITAT Ahmedabad allowed the assessee's appeal regarding disallowance of interest paid to directors under section 40A(2)(b) and commission expenses. The tribunal found that neither AO nor CIT(A) provided cogent basis for determining 18% interest rate as excessive or establishing fair market rate. Revenue authorities failed to demonstrate how their applied rates were reasonable. Regarding commission disallowance, the tribunal noted the assessee, being a pharmaceutical export unit, filed adequate documentation including sales details, agent confirmations, and shipping bills. Revenue accepted identical commission payments in preceding and succeeding years during scrutiny assessments, establishing genuineness of the expenditure. Case-Laws Income Tax Fri, 10 Nov 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=445909