Interest on loan

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2014 I PAID INTEREST ON LOAN RECEIVED FROM MY RELATIVE @15% PA. MY RELATIVE IS A TAX PAYER AND TDS WAS DEDUCTED ON THE INTEREST AMOUNT. ASSESSING OFFICER CLAIMS THAT THE RATE OF INTEREST PAID IS EXCESSIVE AND HAS ADDED 5% OF THE INTEREST AMOUNT TO MY TAXABLE INCOME AMOUNT. WHAT SHOULD I DO?
KINDLY REFER SOME CASE LAWS IN THIS REGARD

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

02 December 2014 File an appeal.ITO has no right to decide if it is EXCESS. He has every right to see the genuinity of transaction.

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

02 December 2014 IT : Unless payment of interest was in excess of market rate, merely because assessee paid interest at different rates to different companies, payment of interest could not be held to be excessive and unreasonable
IT : Evidence accepted to ascertain date of installation of assets is also to be accepted as evidence about use of asset for business purpose, and, hence, depreciation could be allowed

[2014] 50 taxmann.com 52 (Gujarat)
HIGH COURT OF GUJARAT
Commissioner of Income-tax-IV
v.
Sarjan Realities Ltd.

Courtsey : CA Bhupendra Shah

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now