ANNAPURNA INDUSTRIES,JODHPUR vs. DCIT, CENTRAL CIRCLE-1, JODHPUR

ITA 473/JODH/2025Status: DisposedITAT Jodhpur22 September 2026AY 2014-154 pages
AI SummaryAllowed

What did the Tribunal hold?

The ITAT, following a decision of a Coordinate Bench for the Assessment Year 2015-16 in the assessee's own case, found the issue squarely covered. It held that the interest rate paid was at arm's length and consequently deleted the disallowance.

What were the facts?

The assessee, a partnership firm, paid interest to related parties. The Transfer Pricing Officer (TPO) and Assessing Officer (AO) disallowed Rs. 2,17,685 under Section 40A(2), contending the interest rate was not at arm's length.

What were the issues?

Whether the interest paid by the assessee to related parties was at arm's length, thereby challenging the disallowance made under Section 40A(2) of the Income-tax Act.

Which sections of the Income-tax Act were involved?

Section 40A(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI MAKARAND VASANT MAHADEOKAR, HON’BLE

For Respondent: Ms. Nidhi Nair, Addl.CIT-DR (Physically)
Pronounced: 22.09.2026

PER: SHRI SAKTIJIT DEY, V.P.: This is an appeal by the assessee against order dated 01.04.2025 of learned Commissioner of Income Tax (Appeals) [in short, “CIT(A)] Jaipur, for the Assessment Year 2014-15. 2 Asst. Year: 2014-15

2.

The solitary issue arising in the appeal relates to disallowance of Rs.2,17,685/- under section 40A(2) of the Income-tax Act, 1961 (in short, "the Act"), attributable to payment of interest.

3.

Briefly the facts are, the assessee is a partnership firm. For the assessment year unde

The order continues below.

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