Secured vs Unsecured Loans Not Comparable – Interest Paid to Relatives at 15% Allowed

H V Textile Syndicate Vs ITO (ITAT Bangalore) Secured vs Unsecured Loans Not Comparable – Interest Paid to Relatives at 15% Allowed – AO’s Comparison with Bank Loan Rejected- Benchmark Related-Party Interest with Market Rates, Not Bank Rates- Banaglore Tribunal dealt with disallowance of interest u/s 40A(2)(b) where AO had compared bank loan rates with interest paid to relatives. Assessee, engaged in wholesale trade, filed ROI declaring income of ₹65,570. During scrutiny, AO noted that Assessee paid interest of ₹44.38 lakh to relatives at 15% p.a. while it was paying only 10.2% on a ...