2016 (8) TMI 1435

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..... S. Godara,   This assessee's appeal for A.Y. 2008-09, arises from order of the CIT(A)-III, Ahmedabad dated 14-06-2013 in appeal no. CIT(A)- III/249/ACIT Cir. 3/12-13, upholding section 40A(2)(b) disallowance/addition of Rs. 6,86,717/- made by the Assessing Officer, in proceedings under section 143(3) of the Income Tax Act, 1961; in short "the Act". 2. Facts of the case are in a narrow....

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....ng Officer's action. 3. We have heard both the parties. There is no dispute that both the lower authorities have invoked the impugned section 40A(2)(b) disallowance by benchmarking assessee's interest rate paid in other cases @ 18% to disallow 6% excessive rate in case of above three payees. There is not even iota of discussion in the lower orders about market rate of interest. Nor any exercise....