9911796707
TMI Blog2014 (3) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... xcess interest u/s 40A(2)(a) sustained by the CIT(A) - Held that:- The decision in Commissioner of Income Tax II Versus Southern India Bidi Works Pvt. Ltd. [2014 (3) TMI 145 - GUJARAT HIGH COURT ] followed - There was no question of law arising - The assessee paid interest in the range of 12% to 18% on unsecured loans - in the business of making beedies finances were needed for steady flow of cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0A(2)(a) to the extent of Rs.11,68,188/- for A.Y. 2007-08 sustained by the CIT(A), without appreciating that the assessee had failed to justify the commercial expediency for the year under reference in paying the interest at the rate of 18% and the persons to whom the excess interest was paid were covered within the ambit of sec.40A(2)(b) of the Act?" In a separate order passed in case of this ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) confirmed the view of the Assessing Officer upon which the assessee preferred second appeal before the Tribunal. The Tribunal allowed the appeal of the assessee observing that the interest was not on the higher side. Same rate of interest was paid by the assessee for earlier years which was also accepted by the Revenue. Significantly, the assessee had been contending all throughout that the dire ..... X X X X Extracts X X X X X X X X Extracts X X X X
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