2014 (8) TMI 904

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....br>Hon'ble Tarun Agarwala And Hon'ble Dr. Satish Chandra,JJ. For the Appellant : Govind Krishna-Income Tax For the Respondent : Shubham Agrawal ORDER (Delivered by Dr. Satish Chandra,J.) All the appeals have been filed by the department against the consolidated order dated 28.06.2013, passed by the Income Tax Appellate Tribunal in I.T.A. Nos. 296, 297, 344, 411/LKW/2011 for ....

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....rom various sources. In earlier years, the assessee paid the interest @ 10%, but during the assessment year under consideration, the assessee has shown the interest payment @ 18% to 24%. However, the C.I.T.(A.) has restricted the same @ 18%, which was endorsed by the Tribunal. He further submits that the payment of interest @ 18% is in excessive and not permissible as per Section-40A (2)(b) of the....

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.... may be mentioned that in the case of C.I.T. Vs. Amrit Soap Company (2009 308 ITR 287 (P.& H.), it was held that the interest @ 18% to close relative and associated persons is covered under Section-40A (2)(b) of the Act. Further, Kerla High Court in the case of Anandji Shah Vs. C.I.T. 181 ITR 171 observed that payment of interest @ 18% is reasonable. Expediency, legitimacy and the business need wi....

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....ooks of accounts were maintained properly and were never rejected. By keeping in mind the then law and the ratio laid down in the following cases, we find no reason to interfere with the Tribunal's order, who has deleted the addition. (i) C.I.T. Vs. Merrut Cement Company P. Ltd. (2006) 202 CTR 506 (Alld.); (ii) C.I.T. Vs. Star Builders 294 ITR 338 (Guj.); and (iii) Sargam Cinema Vs. C....