TaxTMI 
TaxTMI 
2015 (10) TMI 1627
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.... In ground no. 1, it is pleaded that ld. Commissioner of Income Tax (Appeals) has erred in deleting the disallowance of Rs. 16,69,190/-. 4. Brief facts of the case are that assessee has filed its return of income on 31-10-2007 electronically, declaring total income at Rs. 10,86,070/-. The case of the assessee was selected for scrutiny assessment and a noticed u/s. 143(2) was issued and served upon the assessee. On scrutiny of the assessee, it revealed to the Assessing Officer that assessee had made payments in the shape of interest, shop rent and car rent to the person who covered u/s. 40A(2)(b) of the income tax act. The assessee had paid interest of Rs. 4,41,577/- to seven persons @ 18%. According to the Assessing Officer, the interest r....
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....ct of which payment has been made or is to be made to any person referred to clause "b" of this sub-section and Assessing Officer is of the opinion that such expenditure is excessive or unreasonable having regard to the fair market value of the goods, services or facilities for which the payment is made or to be made in respect of the business or the profession of the assessee or the benefit derived by or accorded to him therefrom, so much of the expenditure as is so considered by the Assessing Officer to be excessive and unreasonable shall not be allowed as a deduction. Sub-clause "b" gave a list of person. No doubt, the payees to whom payments is made by the assessee in the present case falls within the clause "b". The question is, whethe....