1986 (12) TMI 78

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..... and the sole controversy revolves around charging of interest on the debit balances in the accounts of Shri Lalit Nirula, Shri Nalin Nirula and Shri Deepak Nirulal; said to be partners and their family members of the assessee firm. 3. For both the years the assessee charged interest @ 13.5 per cent while the ld. CIT (A) made it 15 per cent as against 18 per cent charged at the assessment stage. .....

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..... 977-78, the ld. CIT (A) has detailed in paragraph 3.4 that, during the year interest paid on various borrowings was as under: . Rs. . "On 16,956 Nil On 21,837 9per cent On 25,250 12per cent On 3,07,300 13.5 per cent On 6,27,368 15per cent On 19,500 18pe .....

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..... addition for this year was also not warranted on facts since the debit balances have no increased and additionally there were, much less, than borrowings interest which is being charged on debit balances. Addition sustained for the asst. yr. 1978-79 at Rs. 10,767 accordingly stands deleted. 9. The net result is that addition in lieu of charge of excess interest on debit balances in the accounts .....

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