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Disallowance of interest paid on unsecured loan
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....isallowance of interest paid on unsecured loan<br> Query (Issue) Started By: - satbir singh wahi Dated:- 5-12-2009 Last Reply Date:- 8-12-2009 Income Tax<br>Got 2 Replies<br>Income Tax<br>AO HAS U/S 4....
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....0A(2) DISALLOWED INTEREST PAID TO RELATIVES @18% AND OTHERS @ 12%.I.E 6% HAS BEEN DISALLOWED.INTEREST PAID TO BANK 14.25% AND UNSECURED LOAN FROM RELATIVES WAS TAKEN TO TIDE OVER THE CRISIS AS BANK HA....
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....S REFUSED LIMITS AS MAJOR DEBTOR HAD GONE TO BIFR.WHETHER AO ACTION RIGHT???any favourable case laws u/s 40A(2) on above issue?? Reply By DEV KUMAR KOTHARI: The Reply: You need to establish reasonabl....
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....eness of interest paid on the basis of totality of facts and circumstances and difference in terems and conditions, you can also establish reasonableness based on other offeres for loan on the day whe....
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....n loan was taken @ 18%. The 12% loans may b taken earlier and at that time facts may be different. It is more a case of facts and not legal issue. The element of unreasonable amount is to be acertain....
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....ed on the day when transaction took place. Reply By Rama Krishana: The Reply: You may visit the following case: 2009 TMI - 32197 - PUNJAB AND HARYANA HIGH COURT. In addition i am fully in agreement w....
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....ith the view of the Mr. Kothari that it is an issue of facts. If the facts shows that the interest paid to relatives is genuine, you would get the justice at the appropriate forum.<br> Discussion Foru....
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