Disallowance of interest u/s 40A - The unsecured borrowings by a ...

Court Rules 16% Interest on Unsecured Loans Reasonable; Rejects 14% Benchmark as Too Rigid u/s 40A.

June 8, 2015

Case Laws Income Tax AT

Disallowance of interest u/s 40A - The unsecured borrowings by a commercial organisation like the assessee, on these facts, @ 16% interest seems to be reasonable. The benchmark @ 14% adopted by the ld. CIT(A), by taking fixed deposit interest rates of companies like MGF Limited and Rama Vision Ltd., cannot be applied in a rigid way. - AT

View Source

← Previous Next →

Disallowance of interest u/s 40A - The unsecured borrowings by a ...

Court Rules 16% Interest on Unsecured Loans Reasonable; Rejects 14% Benchmark as Too Rigid u/s 40A.

June 8, 2015

Case Laws Income Tax AT

You may also like:

The High Court ruled on the constitutional validity of Rule 96(10) of the Central Goods and Services Tax (CGST) Rules, 2017, which was challenged as being ultra vires...

Addition u/s 68 - Unsecured Loans - onus to proof - Assessee had also paid interest on the unsecured loan after deducting TDS @20% which reveals that during subsequent...

The ITAT held: Interest expenditure on unsecured loans is allowable deduction u/s 57(iii) as borrowed funds were utilized for advancing loans earning interest income,...

The ITAT held that interest payments on Compulsorily Convertible Debentures (CCDs) denominated in Indian currency must be benchmarked against domestic interest rates,...

Disallowance on interest u/s. 36(1)(iii) - AO has compared the payment of interest @ 12%/15% on the unsecured loan obtained by the assessee with the interest amount...

Addition u/s 68 - Since the assessing officer treated the unsecured loan as unaccounted received consequent interest was also disallowed. AO without any material...

Addition u/s 40A(2) - assessee has paid interest to certain related parties and treated interest rate @ 15% reasonable and disallowed excess rate paid to related parties...

The interest is evidently and explicitly payable under Rule 6(3A) clause (e) read with Rule 14 of CCR 2004. The interest has indeed been demanded under Rule 14 of CCR...

The High Court upheld the constitutional validity of the Chhattisgarh Sthaniya Kshetra me Mal Ke Pravesh Par Kar Adhiniyam, 1976 (Local Body Tax or Entry Tax Act),...

Recovery of interest on the wrongly availed credit - The Tribunal upheld that interest under Rule 14 is liable on wrongly taken credit, irrespective of its utilization,...

Unsecured loans treated as unexplained cash credits u/s 68. Interest paid on such unexplained loans also added to income. Assessee's contention of repayment of loans...

CENVAT Credit - Whether the department can demand and recover under Rule 14 an amount under Rule 6(3) (i) equal to 10% of the value of the exempted products? - under no...

Vires of amended Rules 14-A, 14-B, 14-C and 14-D of the Rules of High Court of Madras, 1970 - the High Court and even this Court (SC) cannot take upon itself the...

HC upheld validity of Rule 36(4) of CGST Rules, dismissing constitutional challenge. Court determined Rule 36(4) derives authority from Section 16 of CGST Act and...

The Appellate Tribunal dismissed the assessee's appeal regarding the revision u/s 263 concerning unsecured loans received. The Principal Commissioner found that the...

Quick Updates: