2017 (9) TMI 1231

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....he RESPONDENT : Sri. K. M. V. Pandalai, Income Tax Department JUDGMENT Antony Dominic, J. These appeals are filed by the assessee impugning the orders passed by the Income Tax Appellate Tribunal in I.T.A. No.13/17, concerning the Assessment Year 2009-10 and I.T.A. No.14/17, concerning the Assessment Year 2012- 13. The issue raised are common and therefore, these appeals are heard together....

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.... 114 lakhs were "excessive" when compared to the maximum interest that the firm would have been liable to pay if the Partners had not withdrawn Rs. 44.03 lakhs that was available to their credit in their current accounts ? C: Whether the authorities were right in disallowing part of interest paid to HUF on the ground that if the Partners had not withdrawn the amounts standing to their cre....

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....he assessee have availed an unsecured loan of Rs. 1,56,45,603.49/- from the HUF as on 01.04.2008. The Assessing Officer found that the partners in the firm had transferred Rs. 44,03,065.88/-, the credit balance available in their current account to the HUF as on 01.04.2008. The very same amount was again introduced to their current account as a loan from the HUF. Thus, out of the total loan liabil....

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..... Similar is the factual situation insofar as the Assessment Year 2012-13 which is the subject matter of I.T.A. No.14/17, is concerned also. Section 40A(2), makes it clear that where the assessee incurs any expenditure in respect of which payment has been or is to be made to any person referred to in Clause(b) of the Section and the Assessing Officer is of opinion that such expenditure is excessiv....