Interest Paid to Third Parties is Deductible from Net Profit: Jodhpur ITAT [Read Order]

In the case of Shri Subhash Chand Jain vs Assistant Commissioner of Income Tax, Jodhpur ITAT has held that We are of the considered opinion that the interest paid to third parties is deductible from the profit arrived after application of net profit rate in light of decision of Hon’ble Rajasthan High Court and various judgment of this Bench. We have already directed that no addition is required to made in the declared results. Accordingly, ground No 2 and 3 of the appeal are allowed.

Appeal Ground No. 2: That under the facts and circumstances of the case, the ld CIT(A) has erred in not allowing the interest to third parties from the net profit rate so sustained.

Appeal Ground No. 3: That under the facts and circumstances of the case, the ld CIT(A) has erred in sustaining in not following the decision of Hon’ble ITAT Jodhpur Bench in assessee’s own case.”

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