Higher interest paid on unsecured loan to related party justified as loan received without any security: ITAT Mumbai

Gallant Freight And Travels Pvt. Ltd. Vs ACIT (ITAT Mumbai) ITAT Mumbai held that rate of interest @18% paid to related party towards unsecured loan is reasonable as rate of interest charged by bank @12% is with security, whereas, rate of interest charged on unsecured loan is without any security. Facts- During the course of assessment, AO observed that the assessee has paid interest of Rs. 38,65,583 to its related persons and family members @18%. AO held that the average bank rates are 12% and the banks are willing to finance. Thus, it was held that the rate of interest @18% paid by the asses...