Notional Interest Income Cannot Be Taxed Under Section 40A(2)(b): ITAT Jaipur

Advertisement Oswal Transformers Private Limited Vs ITO (ITAT Jaipur) The Income Tax Appellate Tribunal (ITAT) heard the assessee’s appeal against the order dated 10.12.2025 passed by the Commissioner of Income Tax (Appeals)/Addl. JCIT(A)-1, Bengaluru under Section 250 of the Income-tax Act, 1961. At the outset, the assessee confined its arguments to Grounds Nos. 2 to 5, treating the remaining grounds as general or consequential. The first issue concerned the disallowance of Rs.6,56,987 relating to interest transactions with M/s. Power Technocrats, a related party covered under Sectio...