AROMATICS INDIA PRIVATE LIMITED,NEW DELHI vs. ACIT, CIRCLE-3(1), NEW DELHI

The present appeal has been filed by assessee against the order of the ld CIT(A)-32, New Delhi dated 19.01.2018.

The assessee has raised ground No. 2 with regard to confirmation of addition of Rs. 362482/- on account of excessive interest paid on unsecured loan, this addition being arbitrary and contrary to the facts and provisions of law and is liable to be deleted.

Aggrieved with addition of Rs. 362482/- made by the AO as confirmed by the ld CIT(A), the assessee filed appeal before the Tribunal. On going through the record we find that the addition has been made on account of the difference between the lending rate of the banks of 13.25% and payment of interest @1.75% on the loan received from the group companies. We find that the difference of 1.75 % interest rate on secured loans from the banks and the unsecured loans from the private parties can be an acceptable range, and hence, the addition made is hereby deleted.