ITAT deletes Section 40A(2)(a) interest disallowance for failure to compare with FMV

Genxt Mobile LLP Vs ACIT (ITAT Mumbai) Introduction: A recent case, Genxt Mobile LLP vs. ACIT, came before the Income Tax Appellate Tribunal (ITAT) Mumbai, revolving around the disallowance of interest expenditure under Section 40A(2)(a) of the Income Tax Act, 1961. The tribunal’s decision addressed whether the disallowance was justified or not. This article provides an in-depth analysis of the case and its implications. Detailed Analysis: 1. Background of the Case: Genxt Mobile LLP, a wholesale distributor of mobile phones and accessories, filed its return for the assessment year 2014-1...