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The Tax Publishers Yew Investment Pvt. Ltd. v. Asstt. CIT [ITA No. 5794/Mum/2014, dt. 6-4-2016] : 2016 TaxPub(DT) 1826 (Mum-Trib) Notional interest addition Assessee in the business of investment had lent to one Sunshine share broking Pvt. Ltd. a loan at 6%. There were other loans which were given at an interest of 9% to 12%. Assessing Officer raised the issue of difference in interest and thus made notional addition of the differential interest. Held On further appeal: Held in favour of the assessee that there was no provision in the act to make notional additions. If it was real income which accrued then it can be taxed. The loans were given at a time when interest rates were hovering around 6% - 7% stands accepted.
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