9911796707
TMI Blog2009 (6) TMI 992X X X X Extracts X X X X X X X X Extracts X X X X ..... , 2008 passed for asst. yr. 2005-06. The solitary grievance of assessee is that learned CIT(A) has erred in law in partly confirming the disallowance made under s. 40A(2)(b) of the Act. 2. The brief facts of the case are that assessee has taken certain loans from the persons/entities which are covered under s. 40A(2)(b) of the Act. It has paid interest @ 18 per cent on such unsecured loans to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted out that by taking the loans from the near and dear assessee has avoided a lot of paper formalities which was required to be completed if loans are taken from the bank. He also pointed out if the loans were taken from the bank assessee was to provide collateral securities. He relied upon the Tribunal's decision rendered in the case of Satya Narain Kesho Ram (P) Ltd. vs. Dy. CIT (2009) 21 D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices or benefit is availed over and above the market cost for such services and benefits then this excess amount would not be allowed to the assessee as deduction. In the present case the assessee has paid the interest @ 18 per cent on the loans taken from the persons covered by the cl. (b) of s. 40A(2) of the Act. The argument of the assessee is that against these loans it has not provided any se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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