Addition u/s 40A(2) - disallowance of interest claim of 9% - ...

ITAT and High Court agree: Section 40A(2) should not cause hardship in genuine cases, disallowance of 9% interest overturned.

December 1, 2021

Case Laws Income Tax HC

Addition u/s 40A(2) - disallowance of interest claim of 9% - ITAT has rightly concluded that the provisions like Section 40A are meant to check evasion of tax through excessive or unreasonable payment to relatives and associate concerns and should not be applied in a manner which will cause hardship in bonafide cases relying on Section 40A(2) - it is not a case of tax evasion in as much as it is not the Revenue’s case if the rate would have been less the assessee’s profit would have been more. - HC

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Addition u/s 40A(2) - disallowance of interest claim of 9% - ...

ITAT and High Court agree: Section 40A(2) should not cause hardship in genuine cases, disallowance of 9% interest overturned.

December 1, 2021

Case Laws Income Tax HC

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