https://www.taxtmi.com/caselaws?id=774357 Interest expenditure claimed against interest income was disallowed because the assessee charged related concerns a lower rate than unrelated parties without a satisfactory explanation. The authorities treated the rate disparity as relevant to the justification for the expenditure under section 57(iii), and rejected the argument that reasonableness could not be examined in such a case. Reliance on decisions concerning business expenditure was held inapposite, since the issue was the differential treatment in comparable lending transactions rather than the general admissibility of interest. The disallowance was therefore upheld and the claim failed. en-us Fri, 20 Jun 2025 00:00:00 +0530 Tue, 08 Jul 2025 08:36:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774357 Interest expenditure claimed against interest income was disallowed because the assessee charged related concerns a lower rate than unrelated parties without a satisfactory explanation. The authorities treated the rate disparity as relevant to the justification for the expenditure under section 57(iii), and rejected the argument that reasonableness could not be examined in such a case. Reliance on decisions concerning business expenditure was held inapposite, since the issue was the differential treatment in comparable lending transactions rather than the general admissibility of interest. The disallowance was therefore upheld and the claim failed. Case-Laws Income Tax Fri, 20 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774357