https://www.taxtmi.com/caselaws?id=462656 ITAT Ahmedabad partly allowed the assessee's appeals for assessment years 2004-05 and 2005-06 while dismissing the Revenue's cross-appeal. For 2004-05, the Tribunal deleted the disallowance of Rs.10,12,500 on interest paid to directors/relatives, finding 18% rate reasonable for unsecured loans, but upheld the CIT(A)'s restriction of gross profit addition to Rs.6,00,000 including work-in-progress. For 2005-06, the Tribunal reduced the interest disallowance by allowing 18% as reasonable rate instead of 15% determined by CIT(A), following precedent in Empire Motors case. The company engaged in dyeing and printing on job work basis successfully challenged excessive interest disallowances under section 40A(2)(b). en-us Fri, 30 Jul 2010 00:00:00 +0530 Tue, 08 Jul 2025 11:02:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462656 ITAT Ahmedabad partly allowed the assessee's appeals for assessment years 2004-05 and 2005-06 while dismissing the Revenue's cross-appeal. For 2004-05, the Tribunal deleted the disallowance of Rs.10,12,500 on interest paid to directors/relatives, finding 18% rate reasonable for unsecured loans, but upheld the CIT(A)'s restriction of gross profit addition to Rs.6,00,000 including work-in-progress. For 2005-06, the Tribunal reduced the interest disallowance by allowing 18% as reasonable rate instead of 15% determined by CIT(A), following precedent in Empire Motors case. The company engaged in dyeing and printing on job work basis successfully challenged excessive interest disallowances under section 40A(2)(b). Case-Laws Income Tax Fri, 30 Jul 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462656