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TMI Blog2014 (3) TMI 145X X X X Extracts X X X X X X X X Extracts X X X X ..... ess going - The interest rates were related to old borrowings - In the earlier years, such interest rate was accepted by the Revenue – also, the directors in question were in the highest tax bracket – thus, there is no reason to interfere in the findings of the Tribunal – thus, there was no question of law arises - Decided against Revenue. Addition made u/s 41(1) - waiver of sales tax liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Parikh, Advocate ORDER (Per : Honourable Mr. Justice Akil Kureshi) Revenue has raised following questions for our consideration with respect to assessment year 2008-09 challenging the order of the Income Tax Appellate Tribunal ( Tribunal for short) dated 12.7.2013: 1. Whether on the facts and circumstances of the case and in law, the appellate Tribunal was justified in not uphol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs.9.89 lacs (rounded off) under section 40A(2)(a) of the Income Tax Act, 1961 ( the Act for short). The Assessing Officer noticed that the assessee had taken unsecured loans from various sources and in some cases paid 18% interest to its own directors on such loans. He noticed that the loans were taken at interest rates ranging from 12 % to 18%. He, therefore, called upon the assessee and aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d balances. In the facts of the case, we do not see any question of law arising. The assessee paid interest in the range of 12% to 18% on unsecured loans. It was pointed out by the assessee that in the business of making beedies finances were needed for steady flow of cash to keep the business going. The interest rates were related to old borrowings. In the earlier years, such interest rate was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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