2016 (4) TMI 43

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....: HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. Heard Mr. M. R. Bhatt, Senior Advocate, learned counsel for the appellant. 2. The appellant has challenged the order dated 29.09.2015 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench "B" in ITA No.1834/Ahd/2012, by proposing the following two questions: "[1] Whether the Appellate Tribunal has erred in law and on fact in holding t....

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....ed the disallowance. The Revenue carried the matter in appeal before the Tribunal, but did not succeed. 5. As can be seen from the impugned order, the Tribunal has noted that section 40A(2)(b) contemplates that if some undue benefit is being extended by the assessee to the persons mentioned in sub-clause (2)(b) of section 40A of the Act on account of their association with the assessee, then th....

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.... required to produce security against such loans, whereas the loans secured by the assessee were unsecured loans. That by availing of loans from associate concerns, it had avoided a lot of formalities. The Tribunal was of the opinion that the payment of interest at a little higher rate to the persons even if covered under section 40A(2)(b) cannot be termed as exorbitant when the fair market value ....