2016 (8) TMI 1435

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....peal 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 compass. The assessee-an individual trade....

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....th 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 in this direction seems to have been carri....