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TMI Blog2010 (7) TMI 1051X X X X Extracts X X X X X X X X Extracts X X X X ..... st the order of the CIT(A)-XVI, Ahmedabad dated 18.01.2010 for A.Y.2007-2008 arising out of the order of the Assessing Officer passed under Section 143(3) of the Income Tax Act, 1961. 2. Ground No.1 of the assessee s appeal reads as under: 1. Ld.CIT(A) erred in law and on facts to uphold the disallowance of interest paid to persons specified u/s.40A(2)(b) of the IT Act in excess of 16%. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... secured. He also pointed out that in the case of Omkarmal Gaurishanker Vs. ITO, 92 TTJ (Ahd) 223 the Tribunal held that the interest paid to the relatives at the rate of 24% is be reasonable. He also submitted that during the year under consideration, the assessee himself has charged interest from others at the rate of 18%. In view of this, it is submitted by the learned counsel that the payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.CIT(A) ought to have deleted entire addition on this ground. 7. We have heard both the parties and perused the material placed before us. We find that during the year under consideration, the assessee claimed travelling expenses amounting to ₹ 4,29,011/-. The AO disallowed 50% of the claim because the expenses included the expenses of assessee s wife also. The CIT(A) reduced the disall ..... X X X X Extracts X X X X X X X X Extracts X X X X
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