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| The Tax Publishers2020 TaxPub(DT) 4537 (Mad-HC) INCOME TAX ACT, 1961
Section 36(1)(iii) Section 260A
It was not for the revenue authorities to substitute their own wisdom or notion about rate of interest agreed to between parties, including group companies and, as such, finding about commercial expediency or absence thereof was a finding of fact, out of which, no substantial question of law could be said to be arising, requiring consideration under section 260A.
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Appeal (High Court) - Maintainability - No substantial question of law - Charging of lower rate of interest on loan to sister concern vis-a-vis commercial expediency
Assessee claimed deduction under section 36(1)(iii). AO disallowed assessee's claim proportionately on the ground of assessee having advanced loans to sister concern at lower rate of interest without any commercial expediency. Tribunal deleted disallowance on the ground of commercial expediency, Revenue challenged this by way of appeal before High Court.Held: It was not for the revenue authorities to substitute their own wisdom or notion about rate of interest agreed to between parties, including group companies and, as such, finding about commercial expediency or absence thereof was a finding of fact, out of which, no substantial question of law could be said to be arising, requiring consideration under section 260A. Therefore, appeal was dismissed.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
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