TaxTMI 
TaxTMI 
2016 (7) TMI 1452
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....DER PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. ITA Nos. 239 & 1836/Ahd/2012 are two separate appeals by the Assessee preferred against two different orders of the ld. CIT(A)-VI, Ahmedabad dated 28.11.2011 & 25.07.2012 pertaining to A.Ys. 2008-09 & 2009-10 respectively. 2. Both these appeals have common grievance, therefore, they were heard together and are being disposed of by this common order....
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....refore, the assessee has paid excessive interest to related parties. The assessee was asked to explain as to why the excessive interest over and above 12% should not be disallowed. 5. Assessee filed a detailed reply in support of its claim of 18% interest stating that the rate of 18% cannot be considered as unreasonable and excessive. 6. The claim of the assessee did not find any favour with the....
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....ta. 9. Per contra, the ld. D.R. strongly supported the findings of the revenue authorities. 10. We have given a thoughtful consideration to the rival contentions and have carefully perused the orders of the authorities below. The only basis of the Assessing Officer for making the disallowance was that the assessee has paid interest to unrelated parties at varying rates of 6%, 12% and 16%. In our....
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....b). However, it is required to be noted that except aforesaid there was no basis for the Assessing Officer to come to the conclusion that amount of interest paid at the rate of 12 per cent would relate to the concerned parties was otherwise excessive and/or unreasonable. It is not the case on behalf of the revenue that considering the market rate the aforesaid interest paid at the rate of 12 per c....